Mumbai, March 22 (IANS) Co-founders of crypto exchange CoinDCX, Sumit Gupta and Neeraj Khandelwal, were arrested after a First Information Report (FIR) was registered at a Mumbai police station in connection with an alleged cryptocurrency fraud case.
According to the complaint, a person claimed that he was cheated of Rs 71 lakh in a crypto scam, prompting the police to initiate action.
Reports had earlier suggested that the two founders were summoned for questioning before the arrests.
Reacting to the development, CoinDCX strongly denied any wrongdoing and termed the FIR “false” and part of a larger conspiracy against the company.
In a statement posted on X, the company said that the alleged fraud did not involve its official platform, but instead occurred through a fake website impersonating CoinDCX and its founders.
“The FIR filed against our co-founders is false and filed as a conspiracy against CoinDCX by impersonators posing as founders of CoinDCX and cheating the public at large,” the company said. It added that it had already issued public notices warning users about such fraudulent activities.
The company further clarified that the complaint wrongly claims that funds were transferred in cash to third-party accounts that have no connection with CoinDCX.
It emphasised that brand impersonation and cyber frauds are becoming a growing concern in India’s digital finance ecosystem.
CoinDCX said it has identified more than 1,200 fake websites impersonating its platform between April 2024 and January 2026, and has repeatedly cautioned users against falling prey to such scams.
It also said that it is fully cooperating with law enforcement agencies in the ongoing investigation.
Founded in 2018, CoinDCX is one of India’s leading cryptocurrency trading platforms. The company has faced challenges in recent times, including a major cyberattack in 2025 in which hackers breached an internal operational account and stole assets worth $44 million.
However, the company had then said that user funds were not affected and that it had strengthened its security systems following the incident.
--IANS
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