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Mumbai/Thane, March 22, 2026: Co-founders of crypto exchange CoinDCX, Sumit Gupta and Neeraj Khandelwal, have been arrested by Thane Police in connection with an alleged financial fraud case worth ₹71.6 lakh.
The founders were detained in Bengaluru and later produced before a court, which remanded them to police custody until March 23.
Fraud Allegations: Promise of High Returns and Franchise Model
According to the FIR:
- The complainant, an insurance advisor, was allegedly promised high investment returns and franchise opportunities linked to CoinDCX
- The fraud reportedly occurred between August 2025 and February 2026
- Payments were made via cash and bank transfers
- The promised returns and business model were never delivered
Police have invoked provisions under the Bharatiya Nyaya Sanhita and initiated a detailed investigation.
CoinDCX Denies Charges, Calls It ‘Impersonation Scam’
CoinDCX has strongly denied the allegations, stating that:
- Fraudsters were impersonating the founders
- Funds were diverted to third-party accounts not linked to the company
- The FIR is “false and misleading”
In an official statement, the company said it has already issued public warnings about such scams and is cooperating with authorities.
Rising Cyber Fraud in India’s Crypto Ecosystem
The company highlighted a broader concern:
- Over 1,200 fake websites impersonating CoinDCX were reported between April 2024 and January 2026
- Cyber fraud and impersonation cases are rising as retail participation in digital assets increases
What is CoinDCX?
Founded in 2018, CoinDCX is one of India’s largest cryptocurrency platforms:
- Offers trading in assets like Bitcoin and Ethereum
- Serves over 2 crore users
- Provides services including spot trading, margin trading, and crypto education (DCX Learn)
The company is headquartered in Mumbai and was founded by IIT Bombay alumni.
Investigation Ongoing
Authorities are currently:
- Examining financial transactions
- Verifying links between accused and alleged accounts
- Investigating the role of other individuals named in the FIR.
