CoinDCX Co‑Founders Face Police Questions Over Fake Site Scam
A recent police complaint has led to the co‑founders of Indian crypto exchange CoinDCX, Sumit Gupta and Neeraj Khandelwal, being taken in for questioning. The allegations stem from a website that pretended to be CoinDCX and lured investors into losing large sums of money. The complaint was lodged by a 42‑year‑old insurance consultant who said he lost about 71 lakh rupees (≈ $75,000) after following the fake site’s instructions.
Exchange Denies Involvement
In a statement on X, CoinDCX called the filing “false” and claimed it was part of a conspiracy by impersonators who used the founders’ names to divert funds into unrelated accounts. The company also warned that brand impersonation and cyber fraud are growing threats in India’s digital finance scene, and said it is fully cooperating with authorities while continuing to educate users.
Phishing Scale
CoinDCX has reported over 1,200 fake websites using its domain between April 2024 and January 2026. This highlights how widespread phishing attacks are against Indian crypto users. The incident comes amid a broader spike in online investment scams, which accounted for 76 % of all financial losses reported by the Ministry of Home Affairs in 2025. Worldwide, Web3 platforms lost nearly $4 billion to hacks and exploits that year.
Company Background
Founded in 2018, CoinDCX is one of India’s leading crypto trading platforms. It was valued at about $2.45 billion after a Coinbase Ventures investment in October 2025. The exchange has previously faced security concerns, including a July 2025 breach that stole roughly $44 million from an internal account. While customer funds were not affected, the incident made CoinDCX one of the month’s largest hacking victims by loss amount.
Ongoing Investigation
The police investigation into the founders is ongoing, and it remains unclear whether they will be charged or simply questioned. The case underscores the need for vigilance against impersonation scams in the rapidly growing crypto market.
