Trouble continues for cryptocurrency exchange **CoinDCX** as its co-founders have been arrested in a ₹71.6 lakh fraud case registered by Thane’s Mumbra police. On March 16, 2026, an FIR was registered against six people—including co-founders **Sumit Gupta** and **Neeraj Khandelwal**—on charges of cheating, criminal breach of trust and forgery under the Indian Justice Code.
A 42-year-old insurance consultant from Mumbra alleged that he was lured by the promise of 10–12% monthly returns on cryptocurrency investments linked to the alleged **CoinDCX** and franchise rights for Maharashtra from mid-2025 (predominantly from August 2025 to February/March 2026). He transferred ₹71,60,015 through online payments and cash, but neither did he get the returns nor the franchise. Police arrested Gupta and Khandelwal in Bengaluru on March 22 and sent them to police custody; Later he was sent to judicial custody. Four other accused are still absconding.
In a significant development, the complainant filed an affidavit in a Thane court on March 23–24, stating that he had recovered the entire amount from one of the accused and now had no complaint. He also reportedly said that he did not know the two founders personally. Gupta and Khandelwal then applied for bail; The court reserved its decision.
**CoinDCX** has categorically denied any involvement and has described the FIR as “false” and part of a conspiracy by fraudsters. The company says that the fraud occurred through fake websites and third-party accounts that have no connection with its official platform. The company has reported more than 1,212 fake sites mimicking coindcx.com between April 2024 and January 2026 and claimed it is fully cooperating with authorities.
Additionally, in November 2025 the Enforcement Directorate (ED) had attached assets worth ₹8.46 crore during a widespread nationwide cyber fraud investigation involving fake e-commerce apps and crypto transactions; In this case some bank accounts and wallets were linked to CoinDCX (however, the exchange was not accused of any wrongdoing in that case). Investigators are investigating the roles of all accused, and further developments in the case—including possible further arrests or bail decisions—are expected soon. This case highlights the persistent risks associated with brand copying in India’s crypto sector.
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