ChainCatcher report, according to The Block, Sumit Gupta and Neeraj Khandelwal, co-founders of India’s largest cryptocurrency exchange CoinDCX, were arrested by Thane police on suspicion of fraud and remanded until today. The case stems from a report filed by an insurance advisor who claimed to have lost approximately $85,000 through a fraudulent investment scheme linked to CoinDCX. CoinDCX stated the report is “false,” asserting that the fraud was carried out by impersonators via counterfeit websites, not through its official platform, and noted that over 1,200 fake websites mimicking its domain have been reported since April 2024. This arrest marks the second time within less than a year that individuals associated with CoinDCX have been detained by police; previously, a software engineer linked to the exchange’s $44 million hack was arrested in July 2025. CoinDCX, founded in 2018, reached a $2.45 billion valuation in October 2025 after securing investment from Coinbase Ventures.
CoinDCX co-founders arrested in India over fraud allegations; exchange claims impostor sites were involved.
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Summary
India’s leading crypto exchange, CoinDCX, is facing renewed scrutiny after its co-founders, Sumit Gupta and Neeraj Khandelwal, were arrested over fraud allegations. An insurance advisor reported that $85,000 was lost through a fraudulent investment scheme allegedly linked to the exchange. CoinDCX denied the claims, asserting that the fraud was executed via impersonation websites, not its official platform. Since April 2024, the exchange has reported over 1,200 fake websites. This follows a July 2025 update regarding the arrest of a software engineer in connection with a hack that compromised $44 million. Founded in 2018, CoinDCX was valued at $2.45 billion after securing funding from Coinbase Ventures in October 2025.
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