PANews reported on March 23 that, according to The Block, Sumit Gupta and Neeraj Khandelwal, co-founders of CoinDCX, India's largest cryptocurrency exchange, werePANews reported on March 23 that, according to The Block, Sumit Gupta and Neeraj Khandelwal, co-founders of CoinDCX, India's largest cryptocurrency exchange, were
The co-founder of CoinDCX was arrested by Indian police on suspicion of fraud; the exchange claims it was a fake website impersonating him.
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PANews reported on March 23 that, according to The Block, Sumit Gupta and Neeraj Khandelwal, co-founders of CoinDCX, India's largest cryptocurrency exchange, were arrested by Thane police on suspicion of fraud and remanded in custody until March 23. The case stems from a report submitted by an insurance advisor who claimed to have lost approximately $85,000 through a fraudulent investment scheme linked to CoinDCX. CoinDCX denies the report is "inaccurate," stating that the fraud was perpetrated by imposters through counterfeit websites, not through its platform, and that it has reported over 1,200 fake websites impersonating its domain since April 2024.
This arrest marks the second time in less than a year that someone associated with CoinDCX has been detained by police. Previously, a software engineer linked to the exchange's $44 million hack was arrested in July 2025. CoinDCX was founded in 2018 and reached a valuation of $2.45 billion after receiving investment from Coinbase Ventures in October 2025.
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