The founders of Indian cryptocurrency exchange CoinDCX, Sumit Gupta and Neeraj Khandelwal, have been questioned by law enforcement agencies in connection with an alleged impersonation-based fraud case. The development has once again highlighted the growing risk of crypto-related scams in India’s digital investment space.
Founders questioned amid probe
The questioning is linked to a First Information Report (FIR) filed in Thane, Maharashtra, where a case of alleged fraud involving fake crypto investment schemes is under investigation. Authorities reportedly called the founders to assist with the probe, as their names appeared in the complaint.
Police officials are currently examining the nature of the fraud and identifying the individuals responsible. However, sources indicate that the investigation is still in its early stages, and no direct wrongdoing by the founders has been established so far.
₹71 lakh fraud through impersonation
The case originates from a complaint filed by a Mumbra-based insurance consultant who claimed he was duped of around ₹71.6 lakh between August 2025 and March 2026.
According to the complaint, fraudsters impersonated CoinDCX representatives and lured victims with promises of 10–12% returns on crypto investments. The accused allegedly used fake websites and promotional materials resembling the exchange to gain credibility.
The complainant invested ₹26.6 lakh, while two of his acquaintances contributed nearly ₹45 lakh. The promised returns never materialised, and the accused eventually became untraceable, raising suspicions of a coordinated scam.
CoinDCX denies involvement
CoinDCX has denied all allegations, stating that the case is a clear instance of impersonation. The company clarified that it does not offer guaranteed returns or operate any investment schemes, and the complainant had no direct dealings with its official platform.
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The firm also revealed that it has identified over 1,200 fake websites impersonating its brand, underlining the scale of such scams in the crypto sector. It added that it is fully cooperating with authorities in the ongoing investigation.
Growing concern over crypto scams
The incident reflects a broader trend of cybercriminals exploiting popular fintech and crypto platforms to deceive investors. Experts advise users to verify platforms carefully and avoid schemes promising fixed returns.
As the investigation continues, the case is expected to shed light on how impersonation frauds operate and strengthen regulatory scrutiny in India’s evolving crypto ecosystem.