CoinDCX Founders Questioned as Exchange Blames Impersonation Scam

CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal have reportedly been questioned by Thane Police in connection with a crypto fraud complaint, while the exchange says the case stems from an impersonation scam involving more than 1,200 fake websites using its brand.

Reports on the incident conflict. The Economic Times reported that the founders were arrested, while other outlets indicated they were called in for questioning. No official police statement clarifying the distinction has been made public.

The complaint allegedly centers on losses of roughly Rs 71.6 lakh tied to purported crypto investment and franchise promises, according to The Economic Times. Being questioned or named in a complaint does not by itself establish guilt, and no court findings have been reported.

CoinDCX Says an Impersonation Scam Is to Blame

CoinDCX has publicly called the FIR “false” and said it was “filed as a conspiracy.” The exchange attributed the complaint to impersonators who posed as its founders and directed victims to third-party accounts unrelated to the platform.

An impersonation scam in the crypto space typically involves bad actors creating fake websites, apps, or social media profiles that mimic a legitimate exchange. Victims believe they are investing through the real platform, but their funds are routed to wallets controlled by the scammers.

CoinDCX said it flagged more than 1,212 impersonating websites between April 2024 and January 2026. The exchange has a documented history of warning users about fake sites and social media accounts misusing its brand and its founders’ identities.

This is not the first time fake CoinDCX operations have drawn police attention. In January 2024, Delhi Police probed fake websites and apps using the CoinDCX name. In that case, one victim reportedly invested nearly Rs 14 lakh and was then asked for an additional Rs 4.65 lakh. CoinDCX said the matter involved fraudulent URLs masquerading as the exchange, a pattern similar to what it now describes in the current complaint.

It is important to note that CoinDCX’s explanation has not been independently verified against the FIR itself or any official police statement. The distinction between the company’s defense and confirmed findings remains significant as the situation develops. India’s crypto enforcement landscape, which relies heavily on cybercrime complaints and police FIRs rather than a unified regulatory framework, can make such cases harder to assess from the outside.

What the Case Could Mean for CoinDCX Users and the Exchange

Cases involving exchange founders, whether they result in charges or not, tend to raise immediate questions about platform credibility. For CoinDCX users, the key concerns are whether the exchange’s operations remain unaffected and whether user funds are secure.

CoinDCX has said it escalated deceptive websites to India’s CERT and engaged government authorities. If the exchange’s impersonation-scam explanation holds up, the incident may ultimately reinforce the scale of the fake-site problem rather than implicate the platform itself. The broader issue of crypto platforms facing regulatory and legal scrutiny is not unique to India.

From a reputational standpoint, the conflicting reports about whether the founders were arrested or questioned add uncertainty. A clear public statement from Thane Police or a court filing would help resolve the ambiguity. Readers watching this story should look for official law enforcement updates, any formal charges or dismissals, and whether CoinDCX releases additional documentation supporting its impersonation claims.

For users of any exchange, incidents like this are a reminder to verify that they are interacting with official platforms. Crypto impersonation scams have grown alongside the industry, and checking URLs, using official app store links, and avoiding unsolicited investment offers remain basic but effective precautions.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.