Thane Police Arrest CoinDCX Founders in Fraud Case Involving Impersonation Websites

Thane Police arrested CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal in connection with an alleged cryptocurrency fraud case involving impersonation websites.

“Table of Contents CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal were arrested by Thane Police in a financial fraud case”

Blockonomi

The arrest followed a First Information Report (FIR) filed by a 42-year-old insurance consultant who claimed to have lost approximately 71 lakh rupees (roughly $75,000) after investing through what appeared to be a fake CoinDCX website.

Blockonomi

The Economic Times reported that the founders were arrested on allegations of criminal breach of trust, while other sources indicated they were initially summoned for questioning before being taken into custody.

The police operation involved apprehending the accused in Bengaluru before transporting them to Thane, where they were presented before a local court and remanded to police custody.

CoinDCX has vehemently denied any involvement in the alleged fraud, describing the FIR as 'false' and part of a larger conspiracy against the company.

In a statement posted on X, the exchange claimed that the alleged cheating occurred through websites impersonating its platform and founders, rather than through its official channels.

Cointelegraph

The company emphasized that the complaint wrongly alleges funds were transferred to third-party accounts that have no connection to CoinDCX.

According to CoinDCX, this represents a coordinated effort by impersonators to defraud the public while damaging the company's reputation.

The exchange stressed its commitment to cooperating with law enforcement agencies and supporting investigations into the matter.

The case highlights a significant scale of impersonation fraud targeting CoinDCX, with the company reporting over 1,200 fake websites impersonating its platform between April 1, 2024, and January 5, 2026.

“Indian crypto exchange CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal have reportedly been arrested in India following a police complaint alleging their involvement in a crypto investment fraud”

Cointelegraph

This widespread impersonation campaign has created substantial challenges for the crypto exchange and its users, with fraudsters using fake CoinDCX domains to lure investors into fraudulent schemes.

The company has issued multiple public advisories warning users about these impersonation-based scams and has taken proactive measures to combat the growing problem of brand impersonation in India's digital finance ecosystem.

CoinDCX emphasized that it has no association with these fraudulent websites and has been actively working to educate users about the risks.

Founded in 2018, CoinDCX has emerged as one of India's leading cryptocurrency trading platforms, but the company has faced increasing security challenges in recent times.

The most significant incident occurred in 2025 when hackers breached CoinDCX's internal operational account and stole assets worth $44 million.

Cryptonews.net

Despite this major security breach, the company maintained that user funds were not directly impacted and initiated a comprehensive investigation to strengthen its security measures.

This incident, combined with the current fraud allegations, has raised concerns about the security vulnerabilities within India's cryptocurrency ecosystem and the broader risks facing crypto exchanges operating in the region.

The CoinDCX case occurs amid a broader surge in online investment scams and cyber fraud across India's digital finance landscape.

“Indian crypto exchange CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal have reportedly been arrested in India following a police complaint alleging their involvement in a crypto investment fraud”

Cryptonews.net

Recent reports indicate that investment scams accounted for 76% of all financial losses in India in 2025, highlighting the pervasive nature of fraudulent activities targeting investors.

Devdiscourse

The cryptocurrency sector has become particularly vulnerable to such schemes, with impersonation attacks, phishing websites, and high-return investment lures becoming increasingly common.

This trend reflects growing challenges for regulatory authorities in monitoring and preventing fraud in rapidly evolving digital markets, while also raising questions about the effectiveness of current cybersecurity measures protecting investors in India's burgeoning Web3 ecosystem.