The co-founders of CoinDCX, one in all India’s largest cryptocurrency exchanges, had been arrested and questioned by police this week in reference to an alleged fraud totalling roughly 71 lakh rupees ($85,000) — a case the corporate says was carried out fully by scammers impersonating them, not by the founders themselves.
Sumit Gupta and Neeraj Khandelwal had been detained after a First Info Report named them in reference to the scheme. CoinDCX mentioned the criticism was filed in opposition to the mistaken individuals, calling it “a conspiracy in opposition to CoinDCX by impersonators posing as founders.”
Pretend Websites, Actual Victims
The change says criminals constructed a community of fraudulent web sites mimicking its model to steal cash from peculiar buyers. Between April 2024 and January 2026, CoinDCX says it recognized and reported over 1,212 pretend web sites designed to appear to be its official platform. Victims had been allegedly instructed to switch funds in money to third-party accounts that had no connection to the actual change.
“Now we have taken cognizance of the actual fact and revealed a discover to public at massive on our web site that CoinDCX is being focused by fraudsters. The whole conspiracy falsely claims that funds had been transferred to accounts which don’t have any relation to CoinDCX,” the corporate mentioned in a public assertion,” they mentioned.
Change Cooperating, Founders Cleared of Blame
CoinDCX mentioned each co-founders are totally cooperating with regulation enforcement and maintained that they had no involvement within the fraud. The corporate has revealed a public warning on its web site urging customers to confirm they’re utilizing the official platform earlier than making any transactions.
Model impersonation scams have turn into an escalating downside throughout India’s fast-growing digital finance sector, with fraudsters more and more concentrating on well-known crypto platforms to use retail buyers.
Authorities haven’t but commented publicly on the standing of the investigation.
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