Briefly
- CoinDCX mentioned the FIR in opposition to its co-founders is “false” and a part of a “conspiracy” involving impersonators utilizing its model to defraud traders.
- The alternate warned that “CoinDCX is being focused by fraudsters,” including that it has reported over 1,212 pretend web sites mimicking its platform.
- A sufferer alleges losses totaling $76,000 after being lured right into a pretend crypto funding scheme that promised 10–12% returns.
Indian crypto alternate CoinDCX on Sunday dismissed fraud allegations tied to a police investigation, saying the case stems from impersonators posing as its founders and misusing its model to defraud traders.
The response follows a report by Entrackr that the alternate’s founders, Sumit Gupta and Neeraj Khandelwal, had been questioned as a part of an investigation right into a crypto funding rip-off involving people posing as CoinDCX representatives.
“The FIR filed in opposition to our co-founders is fake and filed as a conspiracy in opposition to CoinDCX by impersonators posing as Founders of CoinDCX and dishonest the general public at massive,” the corporate mentioned in a submit on X, including it has issued a public discover warning, “CoinDCX is being focused by fraudsters.”
“Your complete conspiracy falsely claims that funds had been transferred in money to third-party accounts which haven’t any relation to CoinDCX,” the platform mentioned.
Decrypt has reached out to CoinDCX for additional clarification; the corporate has not addressed experiences of the founders’ arrest.
A Mumbra-based insurance coverage guide was reportedly lured right into a scheme promising 10–12% returns utilizing CoinDCX branding and paperwork, in response to the report, with an FIR registered in Thane naming the corporate’s founders amongst others.
He reported losses of $76,000 (Rs 71.6 lakh) between August 2025 and March, together with $28,000 (Rs 26.6 lakh) he invested, whereas two associates invested $26,000 (Rs 25 lakh) and $21,000 (Rs 20 lakh).
“This seems to be a basic case of impersonation fraud,” CA Sonu Jain, chief threat and compliance officer at 9Point Capital, informed Decrypt, citying a sample that’s “more and more widespread within the Indian crypto house.”
“Indian VASPs have repeatedly cautioned customers and flagged such fraudulent web sites to regulation enforcement,” Jain mentioned, noting that unhealthy actors typically exploit trusted manufacturers to construct credibility.
“Founders being referred to as for questioning in such instances shouldn’t be mistaken for culpability,” he added, describing it as “a procedural step as soon as an FIR is registered.”
An FIR, or First Data Report, is a proper file of a grievance by the police once they obtain info {that a} cognizable offence has been dedicated.
Lack of ‘clear regulatory requirements’
“The bigger difficulty is the absence of clear regulatory requirements and investor safety frameworks in India,” Jain mentioned, warning that gaps in oversight enable “such incidents to persist.”
“Regulators ought to now deal with clearly defining platform duties, enabling sooner takedown of fraudulent domains, and formalising coordination between FIU-India, I4C, CERT-In, and crypto exchanges to proactively curb such scams,” Jain added.
CoinDCX mentioned the complainant has no affiliation with its platform and rejected claims that funds had been routed by way of its techniques.
The alternate flagged the dimensions of impersonation exercise, reporting greater than 1,212 pretend web sites impersonating its website between April 1, 2024, and January 5, 2026.
CoinDCX mentioned it’s cooperating with regulation enforcement and persevering with its efforts to lift consumer consciousness to forestall such incidents.
“Regardless of the end result right here, it could be price reflecting on whether or not sufficient is being performed round monetary literacy and due diligence throughout the board, by customers, builders, and regulators,” Vedang Vatsa, Founder of world crypto neighborhood Hashtag Web3, informed Decrypt.
The event comes after a unstable yr for the alternate.
Final July, CoinDCX disclosed a $44.2 million treasury breach, with a Bengaluru-based software program engineer on the agency arrested for allegedly enabling the hack wherein attackers siphoned from an inside CoinDCX account utilizing compromised credentials.
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