Indian crypto change 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 Occasions 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 known as for questioning reasonably than arrested.
The case reportedly facilities on a web site that allegedly posed because the CoinDCX platform and stemmed from a primary data 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 take a position by way of the faux web site, based on an earlier report by the Occasions of India.
In an announcement on X, CoinDCX stated the FIR was “false and filed as a conspiracy” by impersonators posing as its founders and diverting funds to third-party accounts that it stated had no connection to the change.
The corporate described model impersonation and cyber fraud as rising issues in India’s digital finance sector and pressured that it was “totally cooperating with the related regulation 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. Based on information from the Ministry of Residence Affairs cited in Insights IAS, funding scams accounted for 76% of all monetary losses in 2025. Globally, Web3 platforms misplaced round $3.95 billion to hacks and exploits in 2025.
Based in 2018 and primarily based in Mumbai, CoinDCX is certainly one of India’s best-known crypto buying and selling platforms and was valued at about $2.45 billion after an funding from Coinbase Ventures in October 2025.
The change has additionally confronted questions over safety after a July 2025 breach through which attackers stole roughly $44 million from an inside operational account, an incident that made CoinDCX certainly one of that month’s largest hacking victims by losses, although the corporate stated buyer belongings weren’t affected.
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