CoinDCX Founders Arrested Amidst Crypto Fraud and Impersonation Concerns
The co-founders of Indian cryptocurrency exchange CoinDCX, Sumit Gupta and Neeraj Khandelwal, were arrested on Saturday, March 21, 2026, following allegations of a ₹71 lakh (approximately $85,000 USD) cryptocurrency scam.1 The arrests come as the company contends with a surge in impersonation fraud targeting its brand and users.
Fraud Allegations and Police Investigation
The Thane Police apprehended Gupta and Khandelwal from Bengaluru and presented them before a holiday court in Thane, where they were remanded to police custody until Monday.1 The First Information Report (FIR) alleges that the co-founders cheated a complainant, an insurance advisor, between August 2025 and February 2026, with promises of high returns and regulatory approvals for cryptocurrency investments and franchise opportunities.1 Funds were reportedly collected through cash and bank transfers, but the promised franchise or returns were never delivered.
CoinDCX Claims Impersonation Conspiracy
CoinDCX has vehemently denied the allegations, asserting that the FIR is based on a conspiracy involving impersonators posing as the company’s founders to defraud the public.12 The company claims that the fraudulent transactions involved funds transferred to third-party accounts with no connection to CoinDCX.1
Rising Trend of Brand Impersonation
CoinDCX has reported a significant increase in brand impersonation, identifying over 1,212 fake websites mimicking its platform between April 1, 2024, and January 5, 2026.12 The company has issued public notices warning users about these scams and is cooperating with law enforcement agencies to address the issue.1
Previous Cybersecurity Challenges
This incident follows a major cyberattack in 2025, where hackers breached CoinDCX’s internal operational account and stole assets worth $44 million.1 But, the company stated that user funds were not affected and that it has since strengthened its security measures.
About CoinDCX
Founded in 2018, CoinDCX is a leading Indian cryptocurrency exchange that allows users to trade in various cryptocurrencies and digital assets.1
Worth a look