In a recent development, co-founders of CoinDCX, Sumit Gupta and Neeraj Khandelwal, have been apprehended by Thane Police in India amid allegations of a fraudulent crypto investment scheme. This situation arose following a police complaint from a 42-year-old insurance consultant who reportedly lost around 71 lakh Indian rupees (approximately $75,000) after being misled by a counterfeit website masquerading as the legitimate CoinDCX platform.
While local media initially suggested that the founders were called in for questioning, the situation escalated to arrests based on accusations of criminal breach of trust. CoinDCX has publicly denied the allegations, stating that the first information report (FIR) is “false” and part of a conspiracy involving impersonators who have diverted funds to unrelated accounts.
According to CoinDCX, the issue of brand impersonation and cyber fraud has become increasingly concerning in India's digital finance landscape. The firm emphasized its commitment to user education and awareness while cooperating with law enforcement. Additionally, the exchange reported over 1,212 impersonating websites between April 2024 and January 2026, showcasing the scale of phishing attacks affecting crypto users in India.