Two co-founders of cryptocurrency exchange CoinDCX have been arrested by the Thane police in connection with an alleged fraud case involving Rs 71.6 lakh, according to media reports. The company has claimed the charges are based on impersonation and misinformation.
According to police officials, an FIR was registered against CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal, along with others. The charges include cheating, criminal breach of trust and fraud.
A police team tracked down the accused in Bengaluru and took them into custody on Saturday. They were later brought to Thane and produced before a local court, which remanded them to police custody.
INVESTOR ALLEGES FRAUD
The case is based on a complaint filed by a 42-year-old insurance advisor. He alleged that he was cheated of Rs 71.6 lakh between August 2025 and March 2026.
According to the complaint, he was promised high returns on investment in a firm said to be linked with the cryptocurrency platform. He was also offered a franchise opportunity, which further convinced him to invest.
The complainant transferred Rs 71,60,015 through a mix of cash and online transactions over several months. However, he claims that the money was never returned and was instead misused.
COMPANY DENIES ALLEGATIONS
CoinDCX has strongly denied the accusations and called the FIR “false”. CoinDCX has denied the allegations and said the case is based on impersonation. In a statement posted on X, the company said, “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 added that it had already issued public warnings about such frauds. The exchange also clarified that the transactions mentioned in the complaint were not linked to its platform. “The entire conspiracy falsely claims that funds were transferred in cash to third party accounts which have no relation to CoinDCX.”
According to the company, fraudsters may have used its name to mislead investors.
CoinDCX pointed out that brand impersonation is becoming a serious issue in India’s digital finance ecosystem. “Brand impersonation and related cyber frauds are an increasing concern in India’s digital finance ecosystem, and we strongly condemn such actions.”
The company said it has reported over 1,212 fake websites impersonating its platform between April 2024 and January 2026.
Despite denying the charges, CoinDCX said it is cooperating with law enforcement agencies. “We are fully cooperating with the relevant law enforcement authorities. We remain committed to education and user awareness to safeguard our community against such threats.”
Meanwhile, the police said the investigation is ongoing and more details are expected in the coming days.
