CoinDCX Founders Arrested in Alleged Rs 71.6 Lakh Fraud Case

In a significant development, the Thane police have arrested CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal in connection with an alleged fraud case involving Rs 71.6 lakh. The company has denied the allegations, claiming that the FIR is part of a conspiracy by impersonators. The case revolves around a complaint from an insurance advisor who alleges he was deceived into investing large sums based on false promises. As investigations continue, CoinDCX emphasizes its commitment to combating fraud and protecting its users.

By Narendra Chaudhary Mar 23, 2026, 14:12 IST

Arrest of CoinDCX Co-Founders

The police in Thane have taken into custody the co-founders of the cryptocurrency exchange CoinDCX, Sumit Gupta and Neeraj Khandelwal, in relation to an alleged fraud amounting to Rs 71.6 lakh. Officials reported this development on Monday. CoinDCX has refuted the allegations, asserting that the FIR is fabricated and that there is a conspiracy against the company involving impersonators who are deceiving the public.

The arrests stemmed from a complaint lodged on March 16 at the Mumbra police station in Thane, accusing Gupta, Khandelwal, and others of cheating, criminal breach of trust, and fraud. A 42-year-old insurance advisor claimed he was swindled out of Rs 71.6 lakh between August 2025 and March of this year, enticed by promises of substantial returns from investments linked to the cryptocurrency platform. He was also presented with a franchise opportunity, according to police reports.

The complainant, residing in Mumbra, transferred a total of Rs 71,60,015 through various cash and online transactions. However, he did not receive his investment back, and the funds were allegedly misappropriated. A police team from Mumbra apprehended Gupta and Khandelwal in Bengaluru on Saturday. They were subsequently transported to Thane and presented before a local court on Sunday, where they were remanded into police custody until Monday, as stated by senior police inspector Anil Shinde.

"A thorough investigation is ongoing to uncover if there are additional victims associated with this investment scheme," the official noted. In response, CoinDCX issued a statement on Monday, asserting, "The FIR against our co-founders is unfounded and is part of a conspiracy by impersonators posing as CoinDCX founders to defraud the public."

"We have acknowledged this situation and have published a notice on our website alerting the public that CoinDCX is being targeted by fraudsters. The conspiracy falsely claims that funds were transferred in cash to third-party accounts unrelated to CoinDCX," the statement continued. The company highlighted that brand impersonation and related cyber frauds are growing concerns within India's digital finance landscape and condemned such actions.

CoinDCX reiterated its commitment to assist authorities in tackling these issues. "From April 1, 2024, to January 5, 2026, we have reported over 1,212 fraudulent websites impersonating coindcx.com," they stated. "We are fully cooperating with law enforcement and remain dedicated to educating users to protect our community from such threats."