₹71L CoinDCX Fraud Case Turns, Court Finds No Link to Founders

Court grants bail to CoinDCX founders after ₹71L scam traced to fake site; no link found, funds recovered, platform secure.

A fraud complaint of ₹71 lakh had led to their arrest earlier. The court now states that the alleged fraud used a fake website and not the official platform.

Court Finds No Prima Facie Case Against Founders

The court granted bail to Sumit Gupta and Neeraj Khandelwal after reviewing the case details.

It said there was no prima facie evidence linking them to the fraud. The order noted that the activity did not occur on the official CoinDCX platform.

The complainant also informed the court that the lost funds had been recovered. The person stated there was no remaining grievance in the matter.

This statement played a role in the court’s decision to grant bail.

The ruling clarified that the fraud involved impersonation and not direct platform failure. The court observed that the accused were not directly connected to the fraudulent transactions.

Read also: Indian Investors on CoinDCX Shift to Wider Crypto Portfolios

Fraud Traced To Phishing Website Impersonating CoinDCX

Investigators found that the scam was carried out through a phishing website. The fake domain used was “coindcx.pro” while the official website is “coindcx.com”. The design and branding of the fake site resembled the real platform.

Users were misled into entering their details on the fake site. This allowed the attackers to gain access to funds. The fraud was described as a third party phishing attack and not a system breach.

CoinDCX stated that its platform remained secure during the incident. The exchange said that no internal systems were compromised. It also confirmed that user funds on the official platform were safe.

A company statement said, “This was a case of impersonation through a fake website. Our systems remain secure and operational.” The exchange added that it continues to monitor such threats.

Exchange Operations Remain Normal Amid Case Developments

CoinDCX said its services were running without disruption during the investigation, and trading and withdrawals continued as usual for users.

The company maintained that its security systems functioned as intended.

As Live Bitcoin News reported earlier, a 42-year-old consultant from Mumbra filed a complaint on March 16, claiming a loss of ₹71.6 lakh from a scheme promising fixed returns.

CoinDCX said the complainant never contacted its platform and that the fraud used the domain “coindcx.pro,” not its official site.

The company called the FIR false and linked it to impersonators, adding that funds went to unrelated accounts. It also said it had reported over 1,212 fake websites before the incident.

The incident has drawn attention to phishing risks, as fake websites can mimic trusted platforms and mislead users.

Authorities have advised users to verify website URLs and rely on official channels. The court’s decision followed new findings, shifting focus to third party actions, while CoinDCX urged users to report suspicious links.