CoinDCX Rebukes Fraud Allegations, Points to Impersonation Scam in Police Probe

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In brief

CoinDCX said the FIR against its co-founders is “false” and portion of a “conspiracy” involving impersonators utilizing its marque to defraud investors.
The speech warned that “CoinDCX is being targeted by fraudsters,” adding that it has reported implicit 1,212 fake websites mimicking its platform.
A unfortunate alleges losses totaling $76,000 aft being lured into a fake crypto concern strategy that promised 10–12% returns.

Indian crypto speech CoinDCX connected Sunday dismissed fraud allegations tied to a constabulary investigation, saying the lawsuit stems from impersonators posing arsenic its founders and misusing its marque to defraud investors.

The effect follows a report by Entrackr that the exchange’s founders, Sumit Gupta and Neeraj Khandelwal, were questioned arsenic portion of an probe into a crypto concern scam involving individuals posing arsenic CoinDCX representatives.

“The FIR filed against our co-founders is mendacious and filed arsenic a conspiracy against CoinDCX by impersonators posing arsenic Founders of CoinDCX and cheating the nationalist astatine large,” the institution said successful a station connected X, adding it has issued a nationalist announcement warning, “CoinDCX is being targeted by fraudsters.”

“The full conspiracy falsely claims that funds were transferred successful currency to third-party accounts which person nary narration to CoinDCX,” the level said.

Decrypt has reached retired to CoinDCX for further clarification; the institution has not addressed reports of the founders’ arrest.

A Mumbra-based security advisor was reportedly lured into a strategy promising 10–12% returns utilizing CoinDCX branding and documents, according to the report, with an FIR registered successful Thane naming the company’s founders among others.

He reported losses of $76,000 (Rs 71.6 lakh) betwixt August 2025 and March, including $28,000 (Rs 26.6 lakh) helium invested, portion 2 associates invested $26,000 (Rs 25 lakh) and $21,000 (Rs 20 lakh).

“This appears to beryllium a classical lawsuit of impersonation fraud,” CA Sonu Jain, main hazard and compliance serviceman astatine 9Point Capital, told Decrypt, citying a signifier that is “increasingly communal successful the Indian crypto space.”

“Indian VASPs person repeatedly cautioned users and flagged specified fraudulent websites to instrumentality enforcement,” Jain said, noting that atrocious actors often exploit trusted brands to physique credibility.

“Founders being called for questioning successful specified cases should not beryllium mistaken for culpability,” helium added, describing it arsenic “a procedural measurement erstwhile an FIR is registered.”

An FIR, oregon First Information Report, is simply a ceremonial grounds of a ailment by the constabulary erstwhile they person accusation that a cognizable offence has been committed.

Lack of 'clear regulatory standards'

“The larger contented is the lack of wide regulatory standards and capitalist extortion frameworks successful India,” Jain said, informing that gaps successful oversight let “such incidents to persist.”

“Regulators should present absorption connected intelligibly defining level responsibilities, enabling faster takedown of fraudulent domains, and formalising coordination betwixt FIU-India, I4C, CERT-In, and crypto exchanges to proactively curb specified scams,” Jain added.

CoinDCX said the complainant has nary relation with its level and rejected claims that funds were routed done its systems.

The speech flagged the standard of impersonation activity, reporting much than 1,212 fake websites impersonating its tract betwixt April 1, 2024, and January 5, 2026.

CoinDCX said it is cooperating with instrumentality enforcement and continuing its efforts to rise idiosyncratic consciousness to forestall specified incidents.

“Whatever the result here, it would beryllium worthy reflecting connected whether capable is being done astir fiscal literacy and owed diligence crossed the board, by users, builders, and regulators,” Vedang Vatsa, Founder of planetary crypto assemblage Hashtag Web3, told Decrypt.

The improvement comes aft a volatile twelvemonth for the exchange.

Last July, CoinDCX disclosed a $44.2 cardinal treasury breach, with a Bengaluru-based bundle technologist astatine the steadfast arrested for allegedly enabling the hack successful which attackers siphoned from an interior CoinDCX relationship utilizing compromised credentials.