CoinDCX founders arrested for alleged cheating and fraud: company shares statement

Founders of cryptocurrency exchange have been arrested by Thane Police in a case related to alleged cheating and fraud. According to a report by Economic Times, co-founders Sumit Gupta and Neeraj Khandelwal were detained from Bengaluru and produced before a court, which sent them to police custody until Monday, March 23.

The case relates to allegations of financial fraud linked to cryptocurrency investments and franchise offers.

FIR alleges Rs 71.6 lakh fraud

According to police, an FIR has been filed against six individuals, including the two founders, for allegedly cheating a complainant of Rs 71.6 lakh.The complainant, an insurance advisor, alleged that he was promised high returns and franchise opportunities linked to CoinDCX between August 2025 and February 2026.

Police said the accused collected money through cash and bank transfers but did not deliver the promised returns or franchise.Authorities have invoked provisions of the Bharatiya Nyaya Sanhita and started an investigation.

CoinDCX denies allegations

CoinDCX said the FIR is false and linked the case to impersonation. In a post shared by the company on X (formerly Twitter), it said:“The FIR filed against our co-founders is false and filed as a conspiracy against CoinDCX by impersonators posing as Founders of CoinDCX and cheating the public at large.

We have taken cognizance of the fact and published a notice to public at large on our website that CoinDCX is being targeted by fraudsters”.“The entire conspiracy falsely claims that funds were transferred in cash to third party accounts which have no relation to CoinDCX,” it added.“Brand impersonation and related cyber frauds are an increasing concern in India’s digital finance ecosystem, and we strongly condemn such actions. We remain fully committed to supporting authorities in addressing such misconduct. Between April 1, 2024 and January 5, 2026, we have reported over 1,212 fake websites impersonating http://coindcx.com.We are fully cooperating with the relevant law enforcement authorities. We remain committed to education and user awareness to safeguard our community against such threats,” the company concluded its post.