The founders of Indian cryptocurrency exchange CoinDCX, Sumit Gupta and Neeraj Khandelwal, have been questioned by authorities following a police complaint alleging their involvement in a crypto investment fraud. The case centers on a website that allegedly impersonated the CoinDCX platform, luring a 42-year-old insurance consultant to invest roughly 71 lakh Indian rupees (approximately $75,000). The funds were reportedly diverted to third-party accounts.
Conflicting reports emerged regarding the founders' status, with some local media indicating an arrest by Thane Police on allegations of criminal breach of trust, while others stated they were merely called for questioning. In a public statement, CoinDCX vehemently denied the allegations, calling the First Information Report (FIR) "false and filed as a conspiracy" by impersonators. The exchange stressed it has no connection to the fake site or the diverted funds.
The incident highlights a severe and growing problem of brand impersonation and cyber fraud in India's digital finance sector. CoinDCX revealed that between April 1, 2024, and January 5, 2026, it reported more than 1,212 websites impersonating its official coindcx.com domain, underscoring the scale of phishing attacks targeting Indian crypto users.
This case occurs against a backdrop of surging online investment scams in India. Data from the Ministry of Home Affairs cited in reports indicates that investment scams accounted for a staggering 76% of all financial losses in the country in 2025. Globally, Web3 platforms lost around $3.95 billion to hacks and exploits in the same year.
Founded in 2018 and based in Mumbai, CoinDCX is one of India's most prominent crypto exchanges. It was valued at approximately $2.45 billion after an investment from Coinbase Ventures in October 2025. The platform has previously faced security scrutiny, suffering a breach in July 2025 where attackers stole roughly $44 million from an internal operational account, though customer assets were reportedly not affected.
