The Thane police have arrested CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal after registering an FIR accusing them and four others of cheating a Mumbra-based insurance adviser of ₹71.6 lakh through an alleged cryptocurrency investment and franchise scheme.
The arrests were made in Bengaluru by Mumbra police and the founders were produced before a court in Thane, which remanded them to police custody while investigations continue. CoinDCX has denied any wrongdoing, claiming the fraud was carried out by impersonators who misused the company’s brand and posed as its founders.
In a significant development, the complainant has since informed the court that he recovered the full amount from another accused and now has “no grievance,” though authorities say the investigation will proceed to establish the facts.
Arrests in ₹71.6 Lakh Crypto Case
The case stems from a complaint filed at the Mumbra police station in Thane district by a 42-year-old insurance adviser from the Kausa area, who alleged he was lured into investing in a cryptocurrency-related venture that claimed to be linked to CoinDCX.
According to the FIR, the complainant was persuaded between August 2025 and early 2026 to transfer a total of ₹71.6 lakh through a combination of online payments and cash transactions after being promised high returns and the opportunity to run a franchise associated with the crypto exchange. Police registered the case under provisions related to cheating and criminal breach of trust and named six individuals, including the two founders, as accused.
Acting on the complaint, a team from the Mumbra police station travelled to Bengaluru and arrested Gupta and Khandelwal before bringing them to Thane for further investigation. Senior Inspector Anil Shinde confirmed the action, stating that the arrests were carried out on the basis of the FIR and that the police would examine all claims and evidence during the course of the probe.
Officials said investigators are trying to determine whether the alleged investment scheme was genuinely connected to CoinDCX or if fraudsters used the company’s name and reputation to gain the victim’s trust. Authorities have also indicated that digital records, transaction trails, and communications between the complainant and the accused are being examined to understand how the money was transferred and who ultimately benefitted from it.
CoinDCX Denies Fraud, Alleges Impersonators
Soon after news of the arrests emerged, CoinDCX issued a public statement strongly denying the allegations and asserting that the case was based on a misunderstanding caused by impersonators posing as its founders. The company said criminals had allegedly created fake websites and communication channels to deceive investors by falsely claiming links with the crypto exchange.
According to CoinDCX, the firm has repeatedly warned users about such scams and has previously identified more than 1,200 fake websites misusing its name or branding. In its statement shared on social media, the company described the FIR as “false” and suggested that the fraud involved individuals exploiting CoinDCX’s reputation rather than the platform itself.
It emphasised that the company does not operate any franchise model, a key element of the investment pitch reportedly used to persuade the complainant. CoinDCX added that it is cooperating with law enforcement agencies and is committed to assisting the investigation so that the real perpetrators can be identified.
The incident highlights a broader problem facing the rapidly growing cryptocurrency sector in India: the misuse of legitimate brand names to lure unsuspecting investors. Cybercrime experts note that scammers often create convincing websites, social media profiles, and messaging groups that appear to represent well-known companies, making it difficult for victims to distinguish genuine opportunities from fraudulent schemes.
Complainant Recovers Money as Case Continues
In a notable development that has added a new dimension to the case, the complainant recently filed an affidavit before a Thane court stating that he had recovered the entire ₹71.6 lakh from one of the other accused individuals and therefore no longer had any grievance. Reports indicate that he also told the court that he did not personally know the CoinDCX founders who were arrested in connection with the complaint.
Despite this statement, the legal proceedings have not been automatically closed. Police officials have clarified that the investigation will continue in order to determine the roles of all individuals named in the FIR and to verify whether the alleged impersonation claims are accurate. The co-founders have reportedly moved a bail plea before the court, and further hearings are expected to determine the next steps in the case.
Experts say such cases often require detailed examination of digital evidence, financial transactions, and communication trails to establish whether a company or its executives were directly involved or whether third parties misused their identities to commit fraud. The outcome of the investigation will therefore depend on forensic analysis and testimony from the accused, the complainant, and other individuals connected to the alleged scheme.
The Logical Indian’s Perspective
The unfolding CoinDCX case reflects the complex challenges that accompany the rapid growth of digital finance and cryptocurrency in India. On one hand, allegations of financial fraud must be taken seriously and investigated thoroughly to ensure justice for victims. On the other hand, the rise of impersonation scams shows how easily the reputation of legitimate companies and individuals can be exploited in the digital world.
For millions of Indians exploring cryptocurrency and online investments, the case serves as a reminder of the importance of verification, caution, and digital literacy. At the same time, companies must continue strengthening safeguards against brand misuse, while law enforcement agencies develop stronger mechanisms to track and dismantle cyber-fraud networks.
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