The co-founders of CoinDCX were arrested by Thane Police on March 22.
• The $85,000 fraud allegation stems from a complaint, but CoinDCX calls it a conspiracy by impersonators using fake websites.
• India’s crypto enforcement remains patchy, depending on PMLA and general criminal laws, exposing compliant exchanges to impersonation risks.
In a dramatic turn of events, the co-founders of CoinDCX, the country’s largest crypto exchange, were taken into custody.
Sumit Gupta and Neeraj Khandelwal, the two co-founders who built CoinDCX, were arrested by Thane Police over the weekend.
What makes the CoinDCX founders’ arrest particularly startling is the company’s firm assertion that the entire matter stems from sophisticated impersonators, not any wrongdoing by the exchange itself.
The allegations at the heart of the CoinDCX founders’ arrest center on a reported fraud of ?71.6 lakh (approximately $85,000).
The complainant, a 42-year-old insurance advisor, claims he was lured between August 2025 and February 2026 with promises of high returns on cryptocurrency investments and exclusive “franchise opportunities” tied to CoinDCX.
According to the FIR, the accused, including the named founders, allegedly assured regulatory approvals and lucrative payouts. The victim reportedly transferred funds through cash and bank deposits to third-party accounts. When no returns materialized, and the promised franchise rights failed to appear, the parties allegedly became untraceable.
At first glance, these claims paint a picture of classic investment fraud. However, the exchange has categorically denied any involvement, calling the FIR “false” and part of a larger conspiracy.
In an official statement, CoinDCX declared:
The company revealed it has reported over 1,212 fake websites impersonating coindcx.com between April 2024 and January 2026. Fraudsters allegedly created lookalike sites, impersonated the founders, and diverted funds to unrelated accounts.
CoinDCX emphasized that the entire conspiracy falsely claims that funds were transferred in cash to third-party accounts with no relation to CoinDCX.
The exchange has issued public warnings on its website and social media, condemned the rising incidence of brand impersonation in India’s digital finance space, and reiterated its full cooperation with authorities.
The surprise element here is the fact that no evidence links the transactions to CoinDCX’s official platforms, wallets, or operations, pointing instead to external scammers exploiting the brand’s popularity.