CoinDCX Founders Arrested in Mumbai Over Alleged Crypto Fraud Case
FIR Filed After Investor Alleges Rs 71 Lakh Scam
Mumbai, March 22: CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal have been arrested following the registration of a First Information Report at a Mumbai police station in connection with an alleged cryptocurrency fraud case.The action comes after a complainant alleged that he was cheated of Rs 71 lakh in a crypto-related scam, prompting authorities to initiate an investigation. Prior to the arrests, reports indicated that both founders had been summoned for questioning by the police.
CoinDCX Denies Allegations, Calls FIR “False”
Responding to the developments, CoinDCX has strongly denied any involvement in the alleged fraud, describing the FIR as “false” and part of a broader conspiracy targeting the company.In a statement shared on X, the company clarified that the incident did not occur on its official platform. Instead, it attributed the fraud to a fake website impersonating CoinDCX and its founders.
“The FIR filed against our co-founders is false and filed as a conspiracy against CoinDCX by impersonators posing as founders of CoinDCX and cheating the public at large,” the company stated.
Fake Websites and Brand Impersonation Under Scrutiny
CoinDCX further highlighted that the complaint inaccurately claims funds were transferred in cash to third-party accounts with no association to the platform.The company underscored the growing threat of brand impersonation and cyber fraud within India’s digital finance ecosystem. It revealed that more than 1,200 fake websites mimicking its platform were identified between April 2024 and January 2026.
CoinDCX said it has issued multiple public advisories to warn users about such fraudulent schemes and urged caution while engaging with crypto platforms.
Company Cooperating With Investigation
The exchange confirmed that it is fully cooperating with law enforcement agencies as the investigation progresses.Founded in 2018, CoinDCX is among India’s prominent cryptocurrency trading platforms. The company has faced challenges in the past, including a cyberattack in 2025 that resulted in the theft of assets worth $44 million from an internal operational account. At the time, CoinDCX maintained that user funds were unaffected and stated that it had strengthened its security measures following the breach.
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