TLDR:

CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal were arrested by Thane Police over an alleged Rs 71.6 lakh fraud.

The complainant was promised high returns and franchise opportunities linked to CoinDCX between August 2025 and February 2026.

CoinDCX says fraudsters impersonated its founders and diverted funds to accounts unrelated to the exchange.

Between April 2024 and January 2026, CoinDCX reported over 1,212 fake websites impersonating its official domain.

CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal were arrested by Thane Police in a financial fraud case. Both were detained in Bengaluru and produced before a court.

The court remanded them to police custody until March 23. The case involves an alleged fraud of Rs 71.6 lakh tied to fake promises of high returns and franchise opportunities related to CoinDCX.

Fraud Allegations and Police Action

An FIR was filed against six individuals, including the two co-founders. The complainant, an insurance advisor, said he was approached between August 2025 and February 2026.

He was promised high returns and franchise opportunities linked to CoinDCX. Neither the promised returns nor the franchise were ever delivered to him.

Police confirmed that the accused collected money through cash and bank transfers. Authorities have invoked provisions of the Bharatiya Nyaya Sanhita in the case.

The investigation is currently active and ongoing. Both co-founders remain in police custody pending further proceedings.

CoinDCX denied any wrongdoing on the part of the company or its leadership. The firm stated the FIR is tied to fraudsters who impersonated its founders.

These impersonators allegedly diverted collected funds to unrelated third-party accounts. The accounts cited in the complaint bear no connection to CoinDCX.

In response, CoinDCX took to its official social media account to address the public directly. The company stated that “the FIR filed against our co-founders is false and appears to be part of a conspiracy involving impersonators posing as CoinDCX founders and cheating the public.”

It added that it had “issued a public notice on our website highlighting that CoinDCX is being targeted by fraudsters.” The firm further confirmed that the accounts mentioned in the complaint are not linked to the company in any way.

CoinDCX Raises Industry-Wide Concerns Over Impersonation

Following its public statement, CoinDCX published a notice on its website alerting users about the ongoing fraud. The firm stressed that individuals posing as its founders had misled members of the public.

These fraudsters reportedly directed collected funds into unrelated third-party accounts. The exchange has been proactively communicating these threats to its community.

Between April 1, 2024 and January 5, 2026, CoinDCX reported over 1,212 fake websites. These sites were impersonating the official CoinDCX domain, coindcx.com.

The volume reflects the scale of brand abuse the exchange has faced over that period. CoinDCX has been actively working to flag and remove such fraudulent platforms.

Brand impersonation and cyber fraud are growing concerns in India’s digital finance space. More people investing online has provided greater opportunity for fraudsters to operate. CoinDCX noted that such cases are rising across the broader industry.

The firm stated that it “strongly condemns such actions” and remains “fully committed to supporting authorities in addressing such misconduct.”

CoinDCX remains focused on user education and community awareness as protective measures. The exchange continues to fully cooperate with relevant law enforcement authorities throughout the investigation.

Users are urged to verify all communications and transactions through the official CoinDCX platform only.

The post CoinDCX Founders Arrested in Fraud Case; Company Blames Impersonators appeared first on Blockonomi.

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Filed under: Bitcoin - @ March 22, 2026 4:17 pm