CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal were picked up by Mumbra police in Bengaluru on Saturday in connection with a Rs 71.6 lakh fraud complaint. They were produced before a Thane court, which remanded them to police custody through March 23. Four others were booked alongside them.
The FIR, registered at Mumbra police station, names the duo under charges of cheating, criminal breach of trust, and fraud. According to Times of India, a 41-year-old insurance advisor was allegedly defrauded over a period stretching from last year through last month. The victim was reportedly lured with high-return promises and a franchise investment scheme.
Exchange Fires Back With Impersonation Claim
CoinDCX responded swiftly. In a post on X, CoinDCX (@CoinDCX) stated that the FIR is false and part of a deliberate conspiracy carried out by fraudsters posing as its leadership. The exchange said funds described in the complaint were moved to third-party accounts having no connection to its official operations.
The company said it has already published a public notice on its website warning users about the impersonation campaign. Between April 1, 2024 and January 5, 2026, CoinDCX says it reported over 1,212 fake websites pretending to be coindcx.com — including domains like coindcx.pro. According to Economic Times, CoinDCX confirmed full cooperation with law enforcement while pushing back on the substance of the allegations.
User complaints on X tell a different story.
Users Flood X With Loss Complaints
@JDN1572922 on X tagged India’s Prime Minister and Finance Minister directly. The account said it has been fighting for justice for 20 months over the alleged loss of 38 lakhs, claiming CoinDCX’s app stopped trading in the account and only resumed after prices dropped — describing it as intentional manipulation.
The same account wrote in another post that CoinDCX is a “purely fake exchange ruining public lives,” urging senior ministers including Nirmala Sitharaman and Piyush Goyal to intervene. @Himflantl on X told CoinDCX it never gave a satisfactory answer about what happened to their account. @AM60762792 on X accused the platform of listing AI16Z, then quietly replacing it with ELIZAOS — a token that later crashed — wiping out funds in the process.
Coin delistings drew anger too. @KarthiDiwa7194 on X said MASA was delisted and SIREN removed from spot trading with no formal notice to users. @Pramod_indoria on X told followers to avoid the platform entirely, citing delisting practices as a method used to disadvantage users.
What Happens Next
CoinDCX says it remains committed to user education and cooperating with authorities. The exchange maintains none of the funds cited in the complaint passed through its official systems. Its public fraud notice page remains live, with a warning banner on its homepage.
The co-founders were in police custody as of the court order Monday. Whether the impersonation defense holds up in proceedings will now be tested through the investigation process. The case marks one of the more public confrontations between Indian law enforcement and a major domestic crypto exchange to date.
Key Takeaways:
- CoinDCX co-founders arrested by Mumbra police over Rs 71.6 lakh fraud; remanded to custody till March 23.
- CoinDCX flagged over 1,212 fake websites impersonating its brand between April 2024 and January 2026.
- Multiple users on X report account manipulation and financial losses tied to the platform.
