CoinDCX Co-founders Held In India Fraud Case Deny Role In Scam Reports

TLDR

• Indian police arrested CoinDCX co-founders in a 71 lakh alleged fraud case.
• CoinDCX said scammers posed as its founders and used fake websites.
• The firm said over 1,212 fake websites were reported from April 2024.
• CoinDCX said victims sent money to accounts unrelated to its platform.
• The co-founders denied wrongdoing and said they were aiding the probe.

Indian police arrested CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal in an alleged crypto fraud case, according to reports. The company denied any role in the fraud and said scammers copied its brand and posed as its founders to mislead users.

The case involves about 71 lakh rupees, or nearly $85,000. Reports said the founders were detained after a First Information Report named them in the complaint. CoinDCX said the complaint named the wrong people and linked the case to a wider impersonation scheme.

Police action follows fraud complaint

Reports said Gupta and Khandelwal were arrested and questioned this week over the alleged fraud. The matter came to light after a complainant accused them in connection with lost funds. Police have not publicly shared full details on how the money moved.

CoinDCX said the fraud did not take place through its official platform. The company said victims were directed to transfer money in cash to third-party accounts. It added that those accounts had no link to CoinDCX or its operations.

The company described the case as a false complaint caused by brand misuse. It said fraudsters created a network that copied CoinDCX branding and misled investors. The exchange said the alleged conspiracy wrongly tied the founders to those acts.

CoinDCX says fake websites copied its brand

CoinDCX said brand impersonation has become a growing threat in India’s digital finance market. It said fraudsters used fake websites and false claims to appear linked to the company. The firm said many users were tricked into believing those channels were genuine.

Between April 2024 and January 2026, CoinDCX said it identified and reported more than 1,212 fake websites. It said these websites were designed to look like its official platform. The company also said it had issued public warnings to help users verify the correct website.

In a public statement, the company said, “CoinDCX is being targeted by fraudsters.” It also said, “The entire conspiracy falsely claims that funds were transferred to accounts which have no relation to CoinDCX.” The firm said both founders were cooperating with law enforcement.

Case draws focus to crypto fraud risks in India

CoinDCX is one of India’s largest crypto exchanges and reports said it has more than 2 crore users. The company is also backed by Coinbase Ventures. Because of its size, the case has drawn wider attention in India’s crypto market.

Reports said the investigation may now focus on digital records, fund trails, and the origin of the fake websites. It is still unclear whether any alleged transaction touched official CoinDCX channels. Authorities have not yet confirmed that point in public.

The outcome may depend on whether investigators find a direct link between the named founders and the reported fraud. For now, the company continues to deny wrongdoing and says the case stems from impersonators. The police probe is still active, according to reports.

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