The announcement follows the detention of co-founders Sumit Gupta and Neeraj Khandelwal by Thane Police on March 21. They were remanded to custody till March 23 and granted bail on March 24, with the court noting that no prima facie case was made out.
How the alleged fraud unfoldedThe case stems from a complaint filed by a Thane-based insurance advisor alleging a ₹65 lakh fraud.
According to the FIR, the complainant was approached in July 2025 by individuals claiming to be associated with CoinDCX. He was offered a Maharashtra franchise for a website called coindcx.pro for ₹28 lakh, along with promised monthly returns of 10 to 12%.
The complainant said he paid ₹20 lakh in cash and facilitated additional investments from acquaintances, taking the total to ₹65 lakh. The promised returns never materialised and the accused allegedly became untraceable.
CoinDCX maintained that the fraud was carried out by impersonators using a fake website and its brand identity.
The company said the founders were not present at the alleged meetings and that no transactions took place on its platform.
In court, the complainant stated he had never met the founders and had recovered the disputed amount from one of the other accused. The magistrate granted bail, noting that no prima facie case was made out.
Timeline
March 16: FIR registered in Mumbra naming six individuals
March 21: Founders detained in Bengaluru by Thane Police
March 23: Police custody ends
March 24: Bail granted, no prima facie case foundMarch 30: CoinDCX announces ₹100 crore cyber safety fund
CoinDCX’s response
Sumit Gupta described the experience as “deeply unsettling,” saying it exposed a structural gap in the ecosystem.
https://x.com/smtgpt/status/2038545851518476695
The Digital Suraksha Network will include:
A 24×7 WhatsApp helpline for verification
A fraud intelligence API built on over 1,200 fake domains flagged
Training programmes for law enforcement
Nationwide consumer awareness campaigns
The company has also called for industry-wide collaboration to build a shared fraud intelligence system.
CoinDCX says it flagged over 1,200 fake websites to CERT-In between April 2024 and January 2026, highlighting the scale of impersonation-led fraud.
Government data cited by the company shows over 28 lakh cybercrime complaints were filed in 2025, with financial losses exceeding ₹22,000 crore. Investment scams accounted for the bulk of these losses.
The episode comes during a turbulent period for CoinDCX.
The exchange suffered a $44.2 million security breach in July 2025 and has faced regulatory scrutiny, including action by the Enforcement Directorate. It has also seen multiple senior-level exits over the past year.
Even so, the company is positioning the latest incident as a broader industry issue, arguing that without stronger safeguards, impersonation fraud could impact any digital platform.
