CoinDCX co-founders arrested by Indian police for alleged fraud deny wrongdoing, blame impersonation scheme: reports
The Block
CoinDCX co-founders were arrested over alleged fraud but claim they are victims of an impersonation scheme involving fake websites.Summary
CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal were arrested in Bengaluru by Indian police following an FIR alleging they defrauded a consultant of about $85,000 through promised franchise rights and high returns.
The exchange vehemently denied the allegations, stating the FIR was part of a conspiracy by impersonators using fake websites, and condemned brand impersonation fraud, noting they have reported over 1,212 fake sites impersonating coindcx.com.
This incident occurs during a turbulent time for the Coinbase-backed exchange, which previously suffered a $44 million exploit in July 2025 due to an employee-related security breach.
(Source：The Block)