CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal have reportedly been arrested by Thane Police in India on allegations of criminal breach of trust. The Economic Times reported the development on Saturday, citing local officials. However, other outlets, including Entrackr, suggested the founders were summoned for questioning rather than formally arrested.
The case centers on a website that allegedly impersonated the CoinDCX platform and defrauded at least one investor. A first information report was filed by a 42-year-old insurance consultant who claims to have lost approximately 71 lakh Indian rupees, equivalent to roughly $75,000, after being directed to invest through the fraudulent site. The complaint was first reported by the Times of India.
CoinDCX responded to the allegations in a statement posted on X, describing the FIR as “false and filed as a conspiracy” orchestrated by impersonators who posed as its founders and redirected funds to third-party accounts. The company stated those accounts had no connection to the exchange. CoinDCX also said it is “fully cooperating with the relevant law enforcement authorities” while continuing to focus on user education and awareness.
The exchange highlighted the scale of impersonation attacks it has faced, stating that between April 1, 2024, and January 5, 2026, it reported more than 1,212 websites fraudulently using its coindcx.com domain. The company described brand impersonation and cyber fraud as growing threats within India’s digital finance sector. These phishing schemes have increasingly targeted Indian crypto users in recent years.
The incident reflects a broader surge in online investment fraud across India. According to data from the Ministry of Home Affairs, investment scams accounted for 76% of all financial losses in the country in 2025. On a global scale, Web3 platforms collectively lost approximately $3.95 billion to hacks and exploits during the same year.
Founded in 2018 and headquartered in Mumbai, CoinDCX is among India’s most prominent cryptocurrency trading platforms. The company was valued at around $2.45 billion following an investment from Coinbase Ventures in October 2025. The exchange has built a significant presence in the Indian market since its establishment.
CoinDCX has also faced scrutiny over its own security following a breach in July 2025, in which attackers stole approximately $44 million from an internal operational account. The incident ranked the exchange among that month’s largest hacking victims by losses. The company stated at the time that customer assets were not affected by the breach.
Originally reported by CoinTelegraph.
