CoinDCX 'fraud' case: App founders Sumit Gupta, Neeraj Khandelwal held in Bengaluru; firm claims brand misuse by scammers

THANE: Mumbra police have arrested Sumit Gupta and Neeraj Khandelwal, co-founders of CoinDCX, and four others in connection with a Rs 71.6 lakh fraud case.

The arrests follow an FIR registered at Mumbra police station, where the accused have been booked for cheating, criminal breach of trust, and fraud, said senior inspector Anil Shinde.

A senior police officer, quoting the complaint, said a 41-year-old insurance advisor was allegedly duped of Rs 71.6 lakh in a specific timeline originating last year until last month. Police said the victim was lured with promises of high returns and offered a purported franchise opportunity.

A team from Mumbra police apprehended Gupta and Khandelwal in Bengaluru on Saturday. They were later produced before a Thane court, which remanded them to police custody till March 23.

CoinDCX issued a statement denying the allegations and terming the FIR "baseless." The company claimed that its founders have been targeted as part of a larger impersonation scam. "Fraudsters have been misusing our brand name and impersonating our leadership across unauthorised platforms to run sophisticated scams," the company said.

CoinDCX further stated that it has identified and flagged over 1,200 fraudulent websites, including domains such as coindcx.pro. It maintained that the funds involved in the case were routed to third-party accounts unrelated to its official platform.