The co-founders of CoinDCX, one of India’s largest cryptocurrency exchanges, were arrested and questioned by police this week in connection with an alleged fraud totalling roughly 71 lakh rupees ($85,000) — a case the company says was carried out entirely by scammers impersonating them, not by the founders themselves.
Sumit Gupta and Neeraj Khandelwal were detained after a First Information Report named them in connection with the scheme. CoinDCX said the complaint was filed against the wrong people, calling it “a conspiracy against CoinDCX by impersonators posing as founders.”
Fake Sites, Real Victims
The exchange says criminals built a network of fraudulent websites mimicking its brand to steal money from ordinary investors. Between April 2024 and January 2026, CoinDCX says it identified and reported over 1,212 fake websites designed to look like its official platform. Victims were allegedly told to transfer funds in cash to third-party accounts that had no connection to the real exchange.
“We have taken cognizance of the fact and published a notice to public at large on our website that CoinDCX is being targeted by fraudsters. The entire conspiracy falsely claims that funds were transferred to accounts which have no relation to CoinDCX,” the company said in a public statement,” they said.
Exchange Cooperating, Founders Cleared of Blame
CoinDCX said both co-founders are fully cooperating with law enforcement and maintained they had no involvement in the fraud. The company has published a public warning on its website urging users to verify they are using the official platform before making any transactions.
Brand impersonation scams have become an escalating problem across India’s fast-growing digital finance sector, with fraudsters increasingly targeting well-known crypto platforms to exploit retail investors.
Authorities have not yet commented publicly on the status of the investigation.
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