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

Indian crypto change CoinDCX on Sunday dismissed fraud allegations tied to a police investigation, saying the case stems from impersonators posing as its founders and misusing its model to defraud traders.

The response follows a report by Entrackr that the change’s founders, Sumit Gupta and Neeraj Khandelwal, had been questioned as a part of an investigation right into a crypto funding rip-off involving people posing as CoinDCX representatives.

“The FIR filed towards our co-founders is fake and filed as a conspiracy towards CoinDCX by impersonators posing as Founders of CoinDCX and dishonest the general public at giant,” the corporate stated in a put up on X, including it has issued a public discover warning, “CoinDCX is being focused by fraudsters.”

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“All the conspiracy falsely claims that funds had been transferred in money to third-party accounts which don’t have any relation to CoinDCX,” the platform stated.

Decrypt has reached out to CoinDCX for additional clarification; the corporate has not addressed experiences of the founders’ arrest.

A Mumbra-based insurance coverage marketing consultant was reportedly lured right into a scheme promising 10–12% returns utilizing CoinDCX branding and paperwork, in response to the report, with an FIR registered in Thane naming the corporate’s founders amongst others.

He reported losses of $76,000 (Rs 71.6 lakh) between August 2025 and March, together with $28,000 (Rs 26.6 lakh) he invested, whereas two associates invested $26,000 (Rs 25 lakh) and $21,000 (Rs 20 lakh). 

“This seems to be a traditional case of impersonation fraud,” CA Sonu Jain, chief threat and compliance officer at 9Point Capital, instructed Decrypt, citying a sample that’s “more and more frequent within the Indian crypto area.”

“Indian VASPs have repeatedly cautioned customers and flagged such fraudulent web sites to regulation enforcement,” Jain stated, noting that unhealthy actors usually exploit trusted manufacturers to construct credibility. 

“Founders being known as for questioning in such circumstances shouldn’t be mistaken for culpability,” he added, describing it as “a procedural step as soon as an FIR is registered.”

An FIR, or First Info Report, is a proper document of a criticism by the police once they obtain info {that a} cognizable offence has been dedicated.

Lack of ‘clear regulatory requirements’

“The bigger problem is the absence of clear regulatory requirements and investor safety frameworks in India,” Jain stated, warning that gaps in oversight permit “such incidents to persist.”

“Regulators ought to now give attention to clearly defining platform duties, enabling sooner takedown of fraudulent domains, and formalising coordination between FIU-India, I4C, CERT-In, and crypto exchanges to proactively curb such scams,” Jain added.

CoinDCX stated the complainant has no affiliation with its platform and rejected claims that funds had been routed via its techniques. 

The change flagged the size of impersonation exercise, reporting greater than 1,212 pretend web sites impersonating its web site between April 1, 2024, and January 5, 2026. 

CoinDCX stated it’s cooperating with regulation enforcement and persevering with its efforts to boost person consciousness to forestall such incidents.

“Regardless of the final result right here, it will be price reflecting on whether or not sufficient is being finished round monetary literacy and due diligence throughout the board, by customers, builders, and regulators,” Vedang Vatsa, Founder of world crypto group Hashtag Web3, instructed Decrypt.

The event comes after a unstable 12 months for the change. 

Final July, CoinDCX disclosed a $44.2 million treasury breach, with a Bengaluru-based software program engineer on the agency arrested for allegedly enabling the hack wherein attackers siphoned from an inner CoinDCX account utilizing compromised credentials.