CoinDCX founders arrested amid fraud probe; firm says scammers posing as them misled the public
The company said such impersonation and cyber fraud cases are rising in India’s digital finance space as more people invest online.
- Mar 22, 2026,
- Updated Mar 22, 2026 6:19 PM IST
Co-founders of cryptocurrency exchange CoinDCX, Sumit Gupta and Neeraj Khandelwal, have been arrested by Thane Police in connection with a cheating and financial fraud case, according to a report by The Economic Times.
The founders were detained in Bengaluru and produced before a court, which remanded them to police custody until March 23.
Police said the accused collected money through cash and bank transfers but failed to deliver the promised returns or franchise. Authorities have invoked provisions of the Bharatiya Nyaya Sanhita and initiated an investigation. However, CoinDCX has rejected the allegations, stating that the case is linked to fraudsters impersonating its founders to dupe users, and not due to any wrongdoing by the company or its leadership.
In a statement posted on social media, CoinDCX said individuals pretending to be its founders misled the public and diverted funds to unrelated third-party accounts. It added that the accounts mentioned in the complaint are not linked to the company.
“The FIR filed against our cofounders is false and appears to be part of a conspiracy involving impersonators posing as CoinDCX founders and cheating the public,” the company said. “We have issued a public notice on our website highlighting that CoinDCX is being targeted by fraudsters.”
The company said such impersonation and cyber fraud cases are rising in India’s digital finance space as more people invest online.
It also said that between April 1, 2024 and January 5, 2026, it had reported more than 1,212 fake websites impersonating coindcx.com.
CoinDCX said it is cooperating with law enforcement agencies investigating the case.
“We strongly condemn such actions and remain fully committed to supporting authorities in addressing such misconduct,” the firm urged.
What is CoinDCX?
CoinDCX is an Indian cryptocurrency exchange that allows users to buy, sell and trade digital assets such as Bitcoin, Ethereum and other cryptocurrencies. The platform has over 2 crore users.
It offers services like spot trading, margin trading and other investment options for both beginners and experienced users.
The company was founded in 2018 by Sumit Gupta and Neeraj Khandelwal, both alumni of the Indian Institute of Technology (IIT) Bombay. It is headquartered in Mumbai and is among the largest crypto trading platforms in India.
CoinDCX has also launched education initiatives like DCX Learn to spread awareness about cryptocurrency and blockchain technology.
Co-founders of cryptocurrency exchange CoinDCX, Sumit Gupta and Neeraj Khandelwal, have been arrested by Thane Police in connection with a cheating and financial fraud case, according to a report by The Economic Times.
The founders were detained in Bengaluru and produced before a court, which remanded them to police custody until March 23.
Police said the accused collected money through cash and bank transfers but failed to deliver the promised returns or franchise. Authorities have invoked provisions of the Bharatiya Nyaya Sanhita and initiated an investigation. However, CoinDCX has rejected the allegations, stating that the case is linked to fraudsters impersonating its founders to dupe users, and not due to any wrongdoing by the company or its leadership.
In a statement posted on social media, CoinDCX said individuals pretending to be its founders misled the public and diverted funds to unrelated third-party accounts. It added that the accounts mentioned in the complaint are not linked to the company.
“The FIR filed against our cofounders is false and appears to be part of a conspiracy involving impersonators posing as CoinDCX founders and cheating the public,” the company said. “We have issued a public notice on our website highlighting that CoinDCX is being targeted by fraudsters.”
The company said such impersonation and cyber fraud cases are rising in India’s digital finance space as more people invest online.
It also said that between April 1, 2024 and January 5, 2026, it had reported more than 1,212 fake websites impersonating coindcx.com.
CoinDCX said it is cooperating with law enforcement agencies investigating the case.
“We strongly condemn such actions and remain fully committed to supporting authorities in addressing such misconduct,” the firm urged.
What is CoinDCX?
CoinDCX is an Indian cryptocurrency exchange that allows users to buy, sell and trade digital assets such as Bitcoin, Ethereum and other cryptocurrencies. The platform has over 2 crore users.
It offers services like spot trading, margin trading and other investment options for both beginners and experienced users.
The company was founded in 2018 by Sumit Gupta and Neeraj Khandelwal, both alumni of the Indian Institute of Technology (IIT) Bombay. It is headquartered in Mumbai and is among the largest crypto trading platforms in India.
CoinDCX has also launched education initiatives like DCX Learn to spread awareness about cryptocurrency and blockchain technology.