The Thane police have arrested cryptocurrency exchange platform CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal in connection with an alleged fraud of ₹71.6 lakh, officials said on Monday.
The company, however, claimed the FIR was false, and there was a conspiracy against CoinDCX by impersonators posing as its founders and cheating the public.
The arrests were made following an FIR registered on March 16 at the Mumbra police station in Maharashtra’s Thane city against CoinDCX co-founders Gupta, Khandelwal and others on charges of cheating, criminal breach of trust and fraud, according to officials.
A 42-year-old insurance advisor, the complainant in the case, alleged that he was duped of ₹71.6 lakh between August 2025 and March this year after being lured by promises of high returns by investing in a firm, purportedly associated with the cryptocurrency platform. He was also offered a franchise opportunity, according to the police.
The complainant, a resident of Mumbra, transferred ₹71,60,015 through cash and online transactions at different times. However, the invested amount was not returned, and instead the funds were allegedly misappropriated, they said.
A Mumbra police team apprehended Gupta and Khandelwal from Bengaluru on Saturday. They were later brought to Thane and produced on Sunday before a local court, which remanded them in police custody till Monday, senior police inspector Anil Shinde said.
“A detailed probe is underway to determine if there are more victims linked to this investment scheme,” the official added.
The company, however, in a statement on Monday, claimed, “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.”
“We have taken cognisance 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 in cash to third-party accounts which have no relation to CoinDCX,” it added.
Brand impersonation and related cyber frauds are an increasing concern in India’s digital finance ecosystem, and CoinDCX strongly condemn such actions, it said.
The company further said it is fully committed to supporting authorities in addressing such misconduct. “Between April 1, 2024 and January 5, 2026, we have reported over 1,212 fake websites impersonating coindcx.com,” it said.
“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,” it added
- Brand impersonation is a significant threat in the digital finance sector.
- Companies must actively monitor and combat fraudulent activities to protect their reputation.
- Awareness and education are crucial for consumers to avoid falling victim to scams.
