Indian cryptocurrency exchange CoinDCX has called a police fraud case against its co-founders “false” and part of a “conspiracy.” The company stated that impersonators posing as its founders and using its brand have been defrauding investors. A victim reported losses amounting to $76,000 after being lured into a fake investment scheme promising high returns. CoinDCX warned it has reported over 1,212 fake websites mimicking its platform.
CoinDCX dismissed fraud allegations tied to a police investigation on Sunday. The company stated that the case stems from impersonators posing as its founders and misusing its brand to defraud investors.
Its response followed a report that the exchange’s founders, Sumit Gupta and Neeraj Khandelwal, were questioned as part of the investigation. “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 on X.
The exchange has issued a public notice warning, “CoinDCX is being targeted by fraudsters.” It added, “The entire conspiracy falsely claims that funds were transferred in cash to third-party accounts which have no relation to CoinDCX.”
A Mumbra-based insurance consultant was reportedly lured into a scheme promising 10–12% returns using CoinDCX branding. He reported losses of $76,000 between August 2025 and March, according to an FIR registered in Thane.
“This appears to be a classic case of impersonation fraud,” CA Sonu Jain, chief risk and compliance officer at 9Point Capital, said. He cited a pattern that is “increasingly common in the Indian crypto space.”
“Founders being called for questioning in such cases should not be mistaken for culpability,” Jain added. He described it as “a procedural step once an FIR is registered.”
Jain pointed to a “larger issue” of the absence of clear regulatory standards and investor protection frameworks in India. He warned that gaps in oversight allow “such incidents to persist.”
CoinDCX said the complainant has no association with its platform and rejected claims that funds were routed through its systems. The exchange reported more than 1,212 fake websites impersonating its site between April 2024 and January 2026.
The company stated it is cooperating with law enforcement and continuing efforts to raise user awareness. “Whatever the outcome here, it would be worth reflecting on whether enough is being done around financial literacy and due diligence across the board, by users, builders, and regulators,” Vedang Vatsa, Founder of global crypto community Hashtag Web3, said.
