On March 23, 2026, a magistrate court in Thane, India, granted bail to CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal, who had been arrested over the weekend in connection with a 7.16 million rupee (approx. $86,000) fraud case. The court found no prima facie case against the executives, noting that the available evidence did not implicate them even at an initial stage.
The case originated from a complaint by an investor who claimed to have been cheated in a deal linked to the CoinDCX brand. However, the court order revealed that the informant admitted in an affidavit that "some other person by representing as accused cheated the informant." The judge highlighted that the founders were not present in Mumbra when the alleged offense occurred, and the investigation officer had "no objection" to their release.
In a detailed clarification issued on March 24, CoinDCX attributed the incident to a massive brand impersonation conspiracy. The exchange disclosed it had identified and reported over 1,212 fraudulent websites between April 2024 and early 2026 that were designed to clone its official platform. These sites, such as coindcx.pro, were used to lure victims into a fake "franchise" investment scheme. CoinDCX emphasized that no funds from this case ever entered its audited bank accounts or digital wallets.
The court noted the matter had been "amicably settled" after another accused, Rana, repaid the lost money. Each founder was released on a 50,000 Indian rupee bond and must cooperate with the ongoing investigation. CoinDCX stated the resolution supports its claim of a "third-party impersonation" case and warned users of a wider rise in phishing scams, urging vigilance with website domains.
