Law enforcement officers have questioned CoinDCX founders Sumit Gupta and Neeraj Khandelwal in connection with an alleged impersonation-based crypto fraud, underscoring persistent risks in India’s digital-investment landscape as authorities probe organised scams that misuse established fintech brands.
Founders questioned as part of FIR-linked probe
The questioning is linked to a First Information Report (FIR) registered in Thane, Maharashtra, which alleges a fake crypto investment scheme. Officials summoned the CoinDCX founders after their names appeared in the complaint and sought their cooperation in the ongoing inquiry.
Police sources say the probe is at an early stage and investigators are examining transaction trails, promotional material and communication records to determine the scale of the fraud and identify the perpetrators. No evidence establishing direct wrongdoing by the founders has been reported so far.
Victim alleges ₹71.6 lakh lost to impersonators
The complaint was filed by an insurance consultant from Mumbra who says he and two acquaintances were defrauded of about ₹71.6 lakh between August 2025 and March 2026. The main complainant states he invested ₹26.6 lakh while two others invested nearly ₹45 lakh.
According to the FIR, the accused impersonated CoinDCX representatives and lured victims with promises of 10–12% returns on crypto investments. Investigators allege the fraudsters used fake websites and promotional material that closely mimicked the exchange’s branding to create a false sense of legitimacy.
The promised returns did not materialise and the alleged operators became uncontactable, prompting the victims to approach police. Authorities are attempting to trace the flow of funds and the operators behind the counterfeit platforms.
CoinDCX denies involvement, reports mass impersonation
CoinDCX has denied any involvement and described the matter as a clear case of impersonation. The company reiterated that it does not offer guaranteed returns or run fixed-return investment schemes, and said the complainant had no transactions on its official platform.
The exchange told investigators it has identified more than 1,200 fake websites and numerous fraudulent campaigns using its branding. CoinDCX said it is cooperating fully with law enforcement and urged users to verify official channels before transacting.
Broader implications for crypto investors
Security experts warn that fraudsters frequently exploit well-known fintech and crypto brands to lend credibility to scams, particularly where promised returns are unusually high or guaranteed. They advise investors to confirm domain names, check official app stores, verify social media handles and exercise caution with unsolicited offers.
Regulators and police are increasingly prioritising such cases to protect retail investors and improve detection of organised impersonation rings. The Thane FIR and subsequent questioning are likely to inform wider regulatory scrutiny as India’s crypto ecosystem continues to evolve.
