In short
- CoinDCX said the FIR against its founders is “false” and part of a “conspiracy” involving impersonators to steal money.
- The exchange warned that “CoinDCX is being targeted by fraudsters,” adding that it reported 1,212 fake websites impersonating its platform.
- The victim claims to have lost $76,000 after being lured by a fake crypto scheme that promised 10-12% returns.
Indian crypto exchange CoinDCX on Sunday denied fraud charges linked to a police investigation, saying the charges stemmed from people posing as its founders and misusing its brand to defraud investors.
The answer follows a report in Entrackr that the founders of the change, Sumit Gupta and Neeraj Khandelwal, were questioned as part of an investigation into cryptocurrencies involving people who identified themselves as representatives of CoinDCX.
“The FIR filed against the founders is false and was filed as a conspiracy against CoinDCX by people posing as the founders of CoinDCX to defraud the public,” the company said in a statement. Xadding that it has issued a warning to the public, “CoinDCX is being targeted by fraudsters.”
“The entire scheme falsely claims that funds were transferred to third-party accounts that have no relationship with CoinDCX,” the platform said.
Decrypt has reached out to CoinDCX for more information; The company did not respond reports about the arrest of the founders.
An insurance expert from Mumbra says he was lured by a scheme that promised 10-12% returns using the CoinDCX token and documents, according to the report, an FIR registered in Thane named the founders of the company among others.
He reported a loss of $76,000 (Rs 71.6 lakh) between August 2025 and March, including $28,000 (Rs 26.6 lakh) that he had invested, while two of his colleagues had invested $26,000 (Rs 25 lakh) and $21,000 (Rs 20 lakh).
“This looks like a scam,” CA Sonu Jain, head of risk and compliance at 9Point Capital, said. Decryptbased on a model that is “growing in the Indian crypto space.”
“VASPs in India have repeatedly warned users and posted such fraudulent websites to enforce the law,” Jain said, noting that criminals often use trusted brands to gain credibility.
“The initiators of the call for questioning in such cases should not be considered guilty,” he added, explaining that “the fire control system will be registered.”
An FIR, or First Information Report, is an official record of a complaint filed by the police when they receive information that a cognizable offense has been committed.
Lack of ‘clear regulatory standards’
“The biggest problem is the lack of clear laws and safeguards in India,” Jain said, warning that regulatory gaps allow “such incidents to continue.”
“Regulators should also look at clarifying the responsibilities of the platform, making sure that fraudulent domains are removed quickly, and establishing cooperation between FIU-India, I4C, CERT-In, and crypto exchanges to stop such scams,” Jain said.
CoinDCX said the plaintiff had no connection to its platform and denied claims that money was manipulated by its systems.
The exchange reported an increase in viewing activity, reporting more than 1,212 websites hosting its site between April 1, 2024, and January 5, 2026.
CoinDCX said it complies with the law and continues to make efforts to inform users to avoid such incidents.
“Whatever the results are now, it would be worth considering whether there is enough in the way of financial education and diligence, users, developers, and regulators,” Vedang Vatsa, founder of the global crypto group Hashtag Web3, said. Decrypt.
The development comes after an uneventful year in the transition.
July, CoinDCX to be revealed breaking assets of $44.2 million, is a Bengaluru-based software engineer for the company. to be arrested due to the denial of the hack where the attackers took over CoinDCX’s internal account using compromised credentials.
Daily Debrief A letter
Start each day with top stories right here, including originals, podcasts, videos and more.
