- The co-founders of CoinDCX have been arrested in reference to a 7.16 million rupee ($85,000) cryptocurrency fraud case filed in Thane.
- The FIR alleges the funds have been acquired between August 2025 and February 2026 for prime returns and franchise rights.
- The corporate has denied the costs, saying the impersonators used faux web sites and third-party accounts.
Sumit Gupta and Neeraj Khandelwal, co-founders of Indian cryptocurrency change CoinDCX, have been arrested by Thane police on expenses of a 7.16 million rupee ($85,000) cryptocurrency funding fraud. The go well with alleges that it promised excessive earnings and franchise rights, however the firm denies the allegations.
Key particulars of this rip-off embrace:
FIR claims promise of funding and franchise
In keeping with the criticism, the case stems from an FIR filed on March 16 by a 42-year-old insurance coverage advisor who resides in Mumbra. He claims he was defrauded of 71.6 million rupees (about $85,000).
In the meantime, victims have been approached between August 2025 and February 2026 with guarantees of excessive earnings and franchise alternatives associated to CoinDCX.
Police stated six individuals have been named within the FIR and have been named on expenses together with felony breach of belief below the Bharatiya Nyaya Samhita Act. Funds have been allegedly raised in each money and financial institution transfers, however no returns or franchise rights have been handed over. After that, she was unable to contact the defendant, the criticism added.
Sumit Gupta and Neeraj Khandelwal have been picked up from Bengaluru on Saturday and produced earlier than a vacation courtroom in Thane the place they have been arrested by the Thane police, who remanded them to police custody until March 23.
CoinDCX denies expenses, citing impersonation
CoinDCX rejected the FIR and referred to as it faux. The corporate stated the incident was half of a bigger rip-off wherein fraudsters impersonated founders and types.
The corporate says claims that funds are transferred to linked accounts are false. It states that these accounts don’t have anything to do with CoinDCX.
The corporate seen a sample. The corporate reported that between April 1, 2024 and January 5, 2026, there have been greater than 1,212 faux web sites copying the corporate’s model. One such area, Coindcx.professional, is suspected of being concerned on this incident.
CoinDCX added that the complainant didn’t contact the corporate earlier than submitting the FIR and will have interacted with a fraudulent platform.
Below investigation
The investigation continues. Police first interrogated the founders at Bellandur police station earlier than continuing with the arrests. Authorities are presently investigating monetary traces and communication data.
CoinDCX stated it’s cooperating totally with legislation enforcement and urged customers to be cautious of id theft scams focusing on crypto buyers.
CoinDCX attracts consideration after arrest
The arrest comes at a tough time for the change. In July 2025, CoinDCX confronted a $44 million exploit after malware infiltrated its inside techniques. The loss was coated by the corporate, and customers’ funds weren’t affected.
Based in 2018, CoinDCX experiences greater than 20 million customers and roughly $165 billion in annual buying and selling quantity. Following an funding from Coinbase Ventures in October 2025, the platform reached a valuation of $2.45 billion.
The costs haven’t been confirmed in courtroom and the incident stays below investigation.
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