The co-founders of CoinDCX, Sumit Gupta and Neeraj Khandelwal, were arrested in Mumbai following an FIR related to an alleged cryptocurrency fraud case. A complaint stated that a person was defrauded of Rs 71 lakh in a crypto scam, leading to police action. Reports indicated that the founders were questioned before the arrests took place.
CoinDCX responded to the situation by refuting any wrongdoing and labeling the FIR as “false” and part of a larger conspiracy against the company. The company clarified that the alleged fraud did not occur on its official platform but through a fake website impersonating CoinDCX and its founders.
The complaint alleged that funds were transferred in cash to unrelated third-party accounts, which CoinDCX denied. The company highlighted the rising concerns of brand impersonation and cyber fraud in India’s digital finance sector. CoinDCX disclosed identifying over 1,200 fake websites impersonating its platform and warned users against such scams.
CoinDCX, established in 2018, is a prominent cryptocurrency trading platform in India. Despite facing challenges like a significant cyberattack in 2025, the company assured that user funds remained secure and that it had bolstered its security measures post the incident.
