The co-founders of the crypto exchange CoinDCX, Sumit Gupta and Neeraj Khandelwal, were arrested on Saturday, March 21, in connection with an alleged fraud worth Rs 71.6 lakh. Police in Thane took action after a complaint was filed by a local insurance advisor, Ashish Brijkishore Singh. The complaint claimed that the victims were promised high returns on crypto investments and a franchise opportunity through a website called coindcx.pro.
According to the complaint, the victims met the accused multiple times between July 2025 and February 2026. They were persuaded to invest large sums of money, believing they were dealing with the official CoinDCX platform. Police registered a First Information Report (FIR) at Mumbra police station following the complaint.
Details of the alleged fraud
The FIR outlines how the alleged scam took place. In July 2025, Akash Rana, who is also named in the FIR, approached the victim, claiming to be a franchise partner of Neblio Technologies Private Limited, the entity that operates CoinDCX. The victim was told he could buy the full franchise of coindcx.pro in Maharashtra for Rs 28 lakh.
After agreeing, the victim was introduced to the co-founders, Sumit Gupta and Neeraj Khandelwal, along with Mridul Gupta, the company’s chief operating officer. The accused allegedly claimed that they handled all transactions for the company. The victims were reassured that CoinDCX was India’s first crypto unicorn and registered with both SEBI and RBI. This trust led the victims to invest.
In August 2025, the victim was allegedly asked to deposit Rs 2 lakh to register his ID and Rs 10,000 to generate the said ID. Later, he handed over an additional Rs 20 lakh in cash for the franchise to the accused. The FIR also states that the victim was promised 10–12% monthly returns. Encouraged by these promises, he convinced friends to invest a total of Rs 45 lakh. The complaint claims these funds were misappropriated and never returned.
Police have arrested a total of six people, including the co-founders and other accused. The FIR was originally in Marathi and has been translated into English.
CoinDCX rebuts FIR, cites brand impersonation
CoinDCX has publicly denied any wrongdoing by its co-founders. In a statement on X, the company said the FIR was based on a false claim and a conspiracy. The firm stated that the fraud happened through a website impersonating its brand and founders’ identities.
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“The FIR filed against our co-founders is false and filed as a conspiracy against CoinDCX by impersonators posing as founders and cheating the public,” the company said. It added that the claim of cash transfers to third-party accounts had no relation to CoinDCX.
CoinDCX also highlighted that cyber fraud and brand impersonation are increasing concerns in India’s digital finance sector. The firm reported that between April 2024 and January 2026, over 1,212 fake websites impersonating coindcx.com were detected. It urged the public to remain cautious and stated that it continues to work with authorities on such matters.
The arrest comes amid multiple challenges for the crypto exchange. In November 2025, the Enforcement Directorate seized Rs 8.46 crore across 92 bank accounts linked to CoinDCX and other crypto wallets as part of a money laundering investigation. In July 2025, the exchange suffered a major hack, resulting in the theft of Rs 368 crore. While customer accounts were reportedly safe, the incident affected user trust.
CoinDCX has also faced internal changes. Several senior executives, including the chief technology officer and heads of legal, human resources, and information security, left the company last year. Additionally, the platform was among 17 crypto companies investigated by GST authorities in 2024 for alleged tax evasion amounting to Rs 824 crore.
