CoinDCX Co-Founders Arrested in ₹71.6 Lakh Crypto Fraud Case

• CoinDCX co-founders arrested in ₹71.6 lakh ($85K) alleged crypto fraud case filed in Thane.
• FIR claims funds taken between Aug 2025 and Feb 2026 for high returns and franchise rights.
• Company denies charges, says impersonators used fake sites and third-party accounts.

Indian crypto exchange CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal were arrested by Thane Police in connection with an alleged ₹71.6 lakh ($85K) crypto investment fraud case. The complaint claims promises of high returns and franchise rights, while the company has denied the allegations.

Here are the key details of this fraud case.

FIR Alleges Investment and Franchise Promises

According to the complaint, the case comes from an FIR filed on March 16 by a 42-year-old insurance advisor from Mumbra. He claims he was cheated out of ₹71.6 lakh (around $85,000).

Meanwhile, the victim was approached between August 2025 and February 2026 with promises of high returns and a franchise opportunity linked to CoinDCX.

Police said six individuals are named in the FIR, with charges including criminal breach of trust under the Bharatiya Nyaya Sanhita. Funds were allegedly collected through both cash and bank transfers, but no returns or franchise rights were delivered. The accused later became unreachable, the complaint added.

Sumit Gupta and Neeraj Khandelwal were arrested by Thane Police on Saturday as both were picked up from Bengaluru and presented before a holiday court in Thane, while the court sent them to police custody until March 23.

CoinDCX Denies Charges, Cites Impersonation

CoinDCX rejected the FIR and called it false. The company said the case is part of a larger fraud where scammers impersonate its founders and brand.

According to the firm, the claims about funds being transferred to linked accounts are incorrect. It stated that those accounts have no connection to CoinDCX.

The company noted a pattern. Between April 1, 2024, and January 5, 2026, it reported over 1,212 fake websites copying its brand. One such domain, coindcx.pro, is suspected to be part of this case.

CoinDCX added that the complainant did not contact the company before filing the FIR and may have interacted with a fraudulent platform.

Investigation Ongoing

The investigation remains active. Police initially questioned the founders at Bellandur Police Station before proceeding with the arrest. Authorities are now examining financial trails and communication records.

CoinDCX said it is cooperating fully with law enforcement and urged users to stay cautious about impersonation scams targeting crypto investors.

CoinDCX Under Spotlight After Arrest

The arrest comes during a challenging period for the exchange. In July 2025, CoinDCX faced a $44 million exploit after malware compromised an internal system. The company covered the loss, and user funds were not affected.

Founded in 2018, CoinDCX reports more than 20 million users and about $165 billion in annualized trading volume. The platform reached a $2.45 billion valuation following investment from Coinbase Ventures in October 2025.

The allegations have not been proven in court, and the case remains under investigation.