Crypto exchange CoinDCX’s co-founders Sumit Gupta and Neeraj Khandelwal were arrested on Saturday following a first information report (FIR) filed at a Mumbai police station, according to a report by The Economic Times.
According to the report, the FIR was filed by a person who alleged he was defrauded of ₹71 lakh in a cryptocurrency scam.
What did CoinDCX say?
The development follows reports that the co-founders were summoned for questioning, though the company has denied any wrongdoing and said it is cooperating with authorities.
In a statement on X, CoinDCX said the FIR was “false” and that the alleged cheating occurred through a website impersonating the exchange and its founders.
“The FIR filed against our co-founders is false and filed as a conspiracy against CoinDCX by impersonators posing as Founders of CoinDCX and cheating the public at large. We have taken cognizance of the fact and published a notice to public at large on our website that CoinDCX is being targeted by fraudsters,” the company said.
It added, “The entire conspiracy falsely claims that funds were transferred in cash to third party accounts which have no relation to CoinDCX. Brand impersonation and related cyber frauds are an increasing concern in India’s digital finance ecosystem, and we strongly condemn such actions.”
Rising ‘impersonation’ frauds
The company said it had reported more than 1,212 fake websites impersonating its platform between April 1, 2024 and January 5, 2026.
It said it has no association with such websites and has issued public advisories warning users about impersonation-based scams.
CoinDCX said it remains “fully committed” to supporting law enforcement agencies in addressing the matter.
CoinDCX’s recent issues
Founded in 2018, CoinDCX allows users to trade in cryptocurrencies and digital assets.
The company has recently faced cybersecurity challenges. In 2025, CoinDCX faced a major cyberattack in which hackers breached its internal operational account and stole assets worth $44 million. The company said user funds were not impacted and initiated an investigation, while strengthening security measures to prevent similar incidents and improve its system resilience going forward.
