CoinDCX Founders Questioned as Exchange Blames Impersonation Scam

Indian crypto trade CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal have reportedly been arrested in India following a police criticism alleging their involvement in a crypto funding fraud.

The Financial Occasions reported Saturday that the pair had been arrested by the Thane Police on allegations of legal breach of belief, citing native officers. Different native media, together with Entrackr, reported that the founders had been known as for questioning fairly than arrested.

The case reportedly facilities on an internet site that allegedly posed as the CoinDCX platform and stemmed from a primary data report (FIR) filed by a 42-year-old insurance coverage advisor who claimed to have misplaced about 71 lakh Indian rupees (roughly $75,000) after being lured to take a position through the faux web site, according to an earlier report by the Occasions of India.

In a statement on X, CoinDCX mentioned the FIR was “false and filed as a conspiracy” by impersonators posing as its founders and diverting funds to third-party accounts that it mentioned had no connection to the trade.

The corporate described model impersonation and cyber fraud as rising issues in India’s digital finance sector and burdened that it was “totally cooperating with the related regulation enforcement authorities,” whereas remaining centered on consumer training and consciousness.

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CoinDCX added that between April 1, 2024, and Jan. 5, 2026, it had reported greater than 1,212 web sites impersonating its coindcx.com area, highlighting the size of phishing and impersonation assaults which have more and more plagued Indian crypto customers. 

Funding scams and Web3 losses

The case comes amid a broader rise in on-line funding scams in India. In line with information from the Ministry of House Affairs cited in Insights IAS, funding scams accounted for 76% of all monetary losses in 2025. Globally, Web3 platforms lost around $3.95 billion to hacks and exploits in 2025.

Based in 2018 and based mostly in Mumbai, CoinDCX is one among India’s best-known crypto buying and selling platforms and was valued at about $2.45 billion after an investment from Coinbase Ventures in October 2025.

The trade has additionally confronted questions over safety after a July 2025 breach through which attackers stole roughly $44 million from an inside operational account, an incident that made CoinDCX one among that month’s largest hacking victims by losses, although the corporate mentioned buyer belongings weren’t affected.

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