Police Arrest CoinDCX Founders in Rs 71.6 Lakh Fraud Case: Company Denies Allegations

Thane: Mumbra police have arrested Sumit Gupta and Neeraj Khandelwal, co-founders of CoinDCX, and four others in connection with a Rs 71.6 lakh fraud case. The arrests follow an FIR registered at Mumbra police station, where the accused have been booked for cheating, criminal breach of trust, and fraud, said senior inspector Anil Shinde.

The police stated that a 41-year-old insurance advisor was allegedly duped of Rs 71.6 lakh over a specific timeline that began last year and extended until last month. According to the complaint, the victim was lured with promises of high returns and offered a purported franchise opportunity. A team from Mumbra police apprehended Gupta and Khandelwal in Bengaluru on Saturday. They were later produced before a Thane court, which remanded them to police custody until March 23.

CoinDCX issued a statement denying the allegations and termed the FIR 'baseless.' The company claimed that its founders have been targeted as part of a larger impersonation scam. 'Fraudsters have been misusing our brand name and impersonating our leadership across unauthorized platforms to run sophisticated scams,' the company said. CoinDCX further stated that it has identified and flagged over 1,200 fraudulent websites, including domains such as coindcx.pro. It maintained that the funds involved in the case were routed to third-party accounts unrelated to its official platform.

CoinDCX, a prominent cryptocurrency exchange in India, has been a target of various scams and impersonations in the past. The company has been proactive in identifying and reporting these fraudulent activities to the authorities. The recent arrest of its co-founders has raised concerns among investors and users of the platform. CoinDCX has assured its customers that they are taking all necessary steps to protect their interests and that the company remains committed to transparency and security.

The police are continuing their investigation into the case, and it remains to be seen how this will impact CoinDCX's operations and reputation in the market. The cryptocurrency industry in India is still in its nascent stages, and such incidents can have far-reaching implications for the sector's growth and regulatory environment.