Indian crypto trade CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal have reportedly been arrested in India following a police criticism alleging their involvement in a crypto funding fraud.
The Financial Instances reported Saturday that the pair have been arrested by the Thane Police on allegations of felony breach of belief, citing native officers. Different native media, together with Entrackr, reported that the founders had been referred to as for questioning slightly than arrested.
The case reportedly facilities on a web site that allegedly posed because the CoinDCX platform and stemmed from a primary info report (FIR) filed by a 42-year-old insurance coverage advisor who claimed to have misplaced about 71 lakh Indian rupees (roughly $75,000) after being lured to speculate through the faux website, according to an earlier report by the Instances of India.
In a statement on X, CoinDCX mentioned the FIR was “false and filed as a conspiracy” by impersonators posing as its founders and diverting funds to third-party accounts that it mentioned had no connection to the trade.
The corporate described model impersonation and cyber fraud as rising issues in India’s digital finance sector and pressured that it was “absolutely cooperating with the related legislation enforcement authorities,” whereas remaining centered on person training and consciousness.
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CoinDCX added that between April 1, 2024, and Jan. 5, 2026, it had reported greater than 1,212 web sites impersonating its coindcx.com area, highlighting the size of phishing and impersonation assaults which have more and more plagued Indian crypto customers.
Funding scams and Web3 losses
The case comes amid a broader rise in on-line funding scams in India. In accordance with information from the Ministry of House Affairs cited in Insights IAS, funding scams accounted for 76% of all monetary losses in 2025. Globally, Web3 platforms lost around $3.95 billion to hacks and exploits in 2025.
Based in 2018 and based mostly in Mumbai, CoinDCX is considered one of India’s best-known crypto buying and selling platforms and was valued at about $2.45 billion after an investment from Coinbase Ventures in October 2025.
The trade has additionally confronted questions over safety after a July 2025 breach wherein attackers stole roughly $44 million from an inside operational account, an incident that made CoinDCX considered one of that month’s largest hacking victims by losses, although the corporate mentioned buyer belongings weren’t affected.
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