CoinDCX Founders Grilled in ₹71 Lakh Crypto Fraud Case

Top Summary

• What happened: CoinDCX founders Sumit Gupta and Neeraj Khandelwal were questioned by police regarding a cryptocurrency investment fraud.
• Why it matters: The case highlights the increasing risk of impersonation and fraud within the crypto investment space, potentially impacting investor confidence.
• What changes for people: Investors should be highly cautious of schemes promising guaranteed high returns and verify all information before investing.
• Who is affected: An insurance consultant from Mumbra lost ₹71.6 lakh. CoinDCX's reputation is also at risk.

CoinDCX Founders Questioned

CoinDCX founders, Sumit Gupta and Neeraj Khandelwal, were questioned at Bellandur Police Station on March 20th.

The questioning is linked to an ongoing investigation into a cryptocurrency investment fraud case. The case involves impersonation of CoinDCX and its founders.

The Allegations

The FIR, registered on March 16th in Thane, names several individuals, including Gupta and Khandelwal. The investigation is being led by Thane Police.

The complainant alleges being defrauded of ₹71.6 lakh. He claims individuals impersonated CoinDCX representatives and lured him with promises of 10-12% returns.

The scheme involved a platform called CoinDCX.pro, falsely presented as associated with CoinDCX.

Victims and Investments

The complainant, an insurance consultant, invested ₹26.6 lakh. Two acquaintances, Ajendra Singh Chauhan and Narendra Singh Chauhan, invested ₹25 lakh and ₹20 lakh, respectively.

The promised returns never materialized, and the accused became untraceable. Attempts to contact the individuals or verify the company's offices were unsuccessful.

CoinDCX's Response

 

"The FIR filed against our co-founders is false and has been filed as part of a conspiracy against CoinDCX by impersonators posing as its founders and cheating the public at large."

 

CoinDCX denies the allegations and states it's a victim of impersonation. The company has issued a public notice on its website.

CoinDCX is cooperating with authorities. They claim the complainant has no association with their platform and that they do not offer franchise programs.

The company has reported over 1,200 fake websites to CERT-In.

Past Security Breach

In July 2025, CoinDCX disclosed a security breach. This resulted in the theft of $44.2 million from its treasury. No user funds were impacted.

A software engineer, Rahul Agarwal, was later arrested. He allegedly facilitated the breach through an attack on an internal wallet.

What to Watch Next

The investigation is ongoing, and further developments are expected as police continue to probe the alleged fraud and CoinDCX's involvement. Monitor the case closely for updates on arrests and potential recovery of funds for the victims.