The co-founders of Indian cryptocurrency exchange CoinDCX have reportedly been arrested or questioned by police in connection with an alleged investment fraud. The case centers on a complaint from an individual who claims to have lost roughly $75,000 via a fake website impersonating the exchange. CoinDCX has stated the allegations are part of a “false” conspiracy and that it is cooperating with authorities.
Indian cryptocurrency exchange CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal were reportedly arrested by Thane Police on allegations of criminal breach of trust. Other local media reported the founders were called for questioning rather than arrested.
The case stems from a first information report filed by an insurance consultant who claimed to lose approximately $75,000 after being lured to invest via a fake site. In a statement on X, CoinDCX said the FIR was “false and filed as a conspiracy” by impersonators posing as its founders.
The company stated impersonators diverted funds to unconnected third-party accounts. It described brand impersonation and cyber fraud as growing problems in India’s digital finance sector.
CoinDCX stressed it was fully cooperating with law enforcement authorities while focusing on user education. The exchange reported over 1,212 websites impersonating its domain between April 1, 2024, and Jan. 5, 2026.
Investment scams accounted for 76% of all financial losses in India in 2025 according to government data. Globally, Web3 platforms lost around $3.95 billion to hacks and exploits last year.
Founded in 2018, CoinDCX is a major Indian trading platform valued at about $2.45 billion after a 2025 investment. The exchange experienced a security breach in July 2025 where attackers stole roughly $44 million from an internal account.
