CoinDCX has announced a 100 crore Indian rupees (approximately $11 million) initiative called the Digital Suraksha Network, aimed at tackling cyber fraud and brand impersonation targeting the exchange and the broader digital finance sector. The announcement was made by co-founder and CEO Sumit Gupta in a March 30 post on X. The move follows a turbulent period for the company that included the detention of its two co-founders by police.
Gupta and fellow co-founder Neeraj Khandelwal were taken into custody by Thane police on March 21 in connection with a fraud complaint linked to a counterfeit website called CoinDCX Pro. The fake platform allegedly deceived an investor out of approximately $75,000. A magistrate court subsequently granted the founders bail, finding no prima facie case against them and noting that the complainant had never actually met the real founders.
The fraud was carried out by third parties who impersonated the founders through a spoofed trading site, a position CoinDCX had maintained from the beginning of the incident. The case highlights a growing problem of brand impersonation affecting Indian cryptocurrency platforms. The exchange had previously identified more than 1,200 websites falsely presenting themselves as CoinDCX, pointing to a widespread phishing threat in the sector.
Gupta framed the Digital Suraksha Network as an industry-wide response rather than a company-specific measure. “This is not a crypto problem,” he wrote, arguing that any business with a digital presence risks having its brand copied and used against consumers. The initiative is positioned as a broader cyber safety effort intended to benefit ordinary digital finance users across India.
The network’s proposed components include a round-the-clock WhatsApp helpline allowing users to verify links and platforms before transferring funds. It also features an open fraud intelligence application programming interface, or API, drawing on CoinDCX’s existing database of fraudulent sites. Additional elements include training support for state cybercrime units on blockchain forensics and asset tracing, as well as a public awareness campaign called “Caution Before Transaction.”
Gupta did not provide a detailed timeline for rolling out the network, and no breakdown was given of how much of the $11 million commitment has been budgeted or already deployed. CoinDCX, which counts Coinbase among its investors, was valued at $2.45 billion post-money in October 2025 following an increased investment from Coinbase. Neither Gupta nor CoinDCX had responded to requests for comment by the time of publication.
Originally reported by CoinTelegraph.
