CoinDCX Co-Founders Arrested in India Fraud Case Deny Any Involvement in Scam

TLDR

• Law enforcement in India has taken CoinDCX co-founders into custody in connection with an alleged 71-lakh rupee fraud case.
• CoinDCX stated that fraudsters impersonated its founders and operated counterfeit websites to carry out scams.
• The firm noted that more than 1,212 fake websites have been identified and reported since April 2024.
• CoinDCX clarified that scam victims transferred funds to accounts with no affiliation to its official platform.
• The co-founders have denied any misconduct and stated they are providing full assistance to the ongoing investigation.

(SeaPRwire) –   Per multiple reports, Indian police have arrested CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal in relation to a purported crypto fraud case. The company has rejected claims of any involvement in the scam, stating that fraudsters copied its brand identity and impersonated its leadership to mislead users.

The alleged fraud is valued at roughly 71 lakh rupees, equal to nearly $85,000. Reports indicate the founders were taken into custody after being named in a filed First Information Report. CoinDCX asserted that the complaint incorrectly identifies responsible parties, and tied the incident to a broader ongoing impersonation scheme.

Law enforcement action follows fraud complaint filing

Reports confirm Gupta and Khandelwal were arrested and interrogated this week over the alleged fraud. The matter came to light after a complainant accused the pair of being linked to their lost funds. Police have not yet released full public details about the flow of the allegedly misappropriated money.

CoinDCX stated the fraudulent activity did not occur via its official platform. The company said victims were instructed to send cash transfers to third-party accounts, adding that these accounts have no connection to CoinDCX or its business operations.

@CoinDCX co-founders taken into custody amid fraud probe#CoinDCX confirmed its co-founders Sumit Gupta and Neeraj Khandelwal were arrested by police as part of an investigation into a fraud scheme involving impersonation websites.

The case centers on identity misuse, with scammers building… pic.twitter.com/NHzL1Knmlg

— PHOENIX – Crypto News & Analytics (@pnxgrp) March 22, 2026

The company described the case as a baseless complaint caused by unauthorized brand misuse. It said fraudsters built an entire network that copied CoinDCX branding to mislead investors, adding that the alleged plot incorrectly associates the founders with these criminal acts.

CoinDCX confirms counterfeit sites replicated its brand identity

CoinDCX noted that brand impersonation has become an escalating threat in India’s digital finance market. It said fraudsters use fake websites and misleading claims to falsely present themselves as affiliated with the company, leading many users to mistake these channels for official ones.

Over the period from April 2024 to January 2026, CoinDCX said it detected and reported more than 1,212 fake websites. It said these sites were designed to closely mimic the appearance of its official platform. The company also noted it has released multiple public advisories to help users verify the authenticity of its official website.

In a public statement, the company said, “CoinDCX is being specifically targeted by fraud rings.” It also added, “This entire plot makes false claims about funds being sent to accounts that have no association with CoinDCX.” The firm confirmed both founders are fully cooperating with law enforcement.

Case shines spotlight on crypto fraud risks across India

CoinDCX is one of India’s largest crypto exchanges, with reports stating it has over 2 crore registered users. The company is also backed by Coinbase Ventures. Given its prominent market position, the case has drawn widespread attention across India’s crypto ecosystem.

Reports indicate the investigation will now focus on analyzing digital records, tracing fund trails, and identifying the origin of the fake websites. It remains unclear whether any of the allegedly fraudulent transactions passed through official CoinDCX channels, and authorities have not yet confirmed this detail publicly.

The case outcome will likely depend on whether investigators uncover a direct link between the accused founders and the reported fraud. For now, the company continues to deny any wrongdoing, stating the incident is entirely caused by impersonators. Per reports, the police probe remains active and ongoing.