Here’s a concise summary of the CoinDCX fraud case:
CoinDCX founders questioned: Sumit Gupta and Neeraj Khandelwal, founders of the Coinbase-backed Indian exchange CoinDCX, were questioned by authorities over a $75,000 fraud linked to fake websites impersonating the platform. Reports vary on whether they were arrested, but CoinDCX denies any wrongdoing.
Scale of impersonation: Over 1,200 websites have mimicked CoinDCX between April 2024 and January 2026, highlighting a growing cyber fraud problem targeting crypto users in India.
Company response: CoinDCX emphasized it had no connection to the scams, is fully cooperating with law enforcement, and is working to educate users on online fraud.
Context of investment scams in India: Investment scams accounted for 76% of all financial losses in India in 2025, illustrating the broader risks facing retail investors and crypto platforms.
Despite the controversy, CoinDCX remains a major Indian crypto exchange with a $2.45 billion valuation, committed to combating fraud and protecting users.
