Indian cryptocurrency exchange CoinDCX has announced a major cybersecurity initiative called the Digital Suraksha Network with a commitment of ₹100 crore. This move comes in the wake of a dramatic legal incident where co-founders Sumit Gupta and Neeraj Khandelwal were detained by police on March 21, 2026, over a fraud complaint linked to a fake website.
The arrest stemmed from a ₹71.6 lakh fraud case where scammers used a fake website (coindcx.pro) to impersonate the legitimate CoinDCX platform (coindcx.com). The Thane court granted bail to the founders just three days later, on March 24, after finding no clear case against them. The complainant himself confirmed he had no direct interaction with Gupta or Khandelwal, and no fraudulent transactions occurred on CoinDCX's actual exchange.
In a public statement on X (formerly Twitter), Sumit Gupta described the experience as "deeply unsettling" and "disheartening." He highlighted a critical systemic issue: "If a scammer builds a fake website using a founder’s name or brand and defrauds someone, the founder can face arrest. Not the actual scammer." CoinDCX has internally tracked over 1,200 fraudulent websites impersonating its brand.
The newly launched Digital Suraksha Network is designed as a multi-pronged defense system against online fraud, extending beyond the crypto sector. Its three core components include: a 24/7 WhatsApp helpline for the public to verify links and offers; an open Fraud Intelligence API to share data on fraudulent sites with banks, fintech companies, and other exchanges; and support for law enforcement through funding for blockchain tracking and digital investigation training. The initiative will also run a nationwide awareness campaign dubbed "Caution Before Transaction."
Gupta emphasized that the threat of brand impersonation is not limited to crypto but affects any business with a digital presence. By creating a shared defense system, CoinDCX aims to protect users, prevent innocent entrepreneurs from facing legal jeopardy, and reduce the overall incidence of cyber fraud in India's growing digital economy.
