Coindcx Founders Get Pulled Into Fraud Case Linked To Fake Crypto Websites

Something a bit messy is unfolding around CoinDCX right now, and it’s not the usual kind of crypto news.

According to The Economic Times, the exchange’s co-founders, Sumit Gupta and Neeraj Khandelwal, were arrested by police in connection with a fraud case. The whole situation is tied to impersonation websites, basically fake platforms pretending to be CoinDCX.

At first, it might sound like the company itself is involved. But that’s not exactly how CoinDCX is explaining it.

From their side, they’re saying this is more about scammers misusing their name rather than anything happening internally. Still, once founders get linked to a police case, it’s bound to get people talking.

Fake Investment Platform Promised Returns And Led To Major Loss

The issue seems to trace back to a fake website operating under the name “coindcx.pro.”

From what’s been reported, a consultant based in Mumbai ended up losing ₹71.6 lakh (around $85,000) after putting money into the platform. The site reportedly promised returns of about 10–12%, which, honestly, already sounds a bit too good to be true.

But these kinds of setups are not new in crypto. Scammers often create websites that look almost identical to real platforms, then use attractive offers to pull people in.

In this case, it seems the impersonation worked well enough to convince someone to invest a significant amount.

And that’s where things started getting serious.

Police Step In And Question The Founders After FIR Is Filed

After the complaint, an FIR was filed, and somehow that ended up linking the CoinDCX founders to the case.

As seen in this update, both Sumit Gupta and Neeraj Khandelwal were called in for questioning by Thane Police on March 21.

From there, things escalated pretty quickly, with reports saying they were arrested as part of the investigation.

Now, being named in something like this doesn’t always mean direct involvement, but it does make the situation more complicated.

At this point, it looks like authorities are trying to figure out how the scam connects back to the brand and whether there’s anything more to it beyond the fake websites.

Coindcx Pushes Back And Calls The Case A Conspiracy

CoinDCX hasn’t stayed quiet about this.

The company has denied any involvement and described the FIR as “false.” They also called it a “conspiracy by impersonators,” which is a strong statement.

According to them, the fake domain used in the scam has no connection to their official platform at all.

They’re basically saying: this wasn’t us, it was people pretending to be us.

They also mentioned that they’re cooperating with authorities, so it seems like they’re trying to clear things up from their side while the investigation continues.

More Than 1,200 Fake Websites Have Been Linked To The Brand

One part of this story that really stands out is the number of fake websites involved.

CoinDCX says it has identified over 1,212 fake sites impersonating its brand since April 2024.

That’s… a lot.

It shows how big of a target major crypto platforms have become. Once a name gets popular, scammers start using it in different ways, especially to trick people who may not double-check URLs or details.

And when you have that many fake versions floating around, it becomes harder for regular users to tell what’s real and what’s not.

Situation Reflects Bigger Problem Of Crypto Impersonation Scams

Looking at the bigger picture, this isn’t just about one company or one case.

Impersonation scams have been happening for a while in crypto, and they don’t seem to be slowing down. Fake websites, guaranteed return promises, cloned platforms, it’s a pattern at this point.

This case just puts a spotlight on how far it can go, especially when real company names and even founders get dragged into it.

For CoinDCX, the main focus now seems to be proving that they had nothing to do with the fraud and helping authorities figure out who actually did.

For users, it’s another reminder to be careful, especially when something looks official but promises easy money.

For now, the situation is still developing. There are claims, counterclaims, and an ongoing investigation.

But one thing is clear: the line between real platforms and fake ones is still something a lot of people are struggling to spot.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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