CoinDCX Founders in Shocking Fraud Probe as Fake Crypto Site Steals Millions

• CoinDCX founders questioned as fake platform scam triggers major investigation
• Investor loses millions after falling victim to CoinDCX impersonation website
• Crypto scams surge as fraudsters exploit trusted exchange brands in India

A major fraud investigation in India has drawn attention to CoinDCX after a complaint linked a fake crypto platform to significant financial losses, and authorities in Thane initiated the probe after an investor reported losing millions through a website impersonating the exchange. According to local reports, CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal were questioned by police as part of the inquiry, conflicting updates emerged as some sources clarified they were called for questioning rather than formally arrested.

The case centers on a fraudulent website designed to mimic CoinDCX and attract unsuspecting investors, and a 42-year-old insurance consultant claimed the platform convinced him to invest, leading to losses of about 71 lakh Indian rupees. Consequently, the incident triggered a deeper investigation into how the impersonation operation functioned, while authorities continue examining whether additional victims may have been affected.

CoinDCX denied any involvement and described the allegations as baseless, and the company stated that scammers impersonated its founders while redirecting funds to unrelated third-party accounts. Moreover, it emphasized that these accounts had no connection to its official operations, and the exchange confirmed it is cooperating fully with law enforcement authorities. Additionally, CoinDCX urged users to verify official domains before making transactions, as impersonation schemes continue to rise across the crypto sector.

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Fake Platforms Surge as Crypto Investors Face Growing Risks

The incident reflects a wider trend of increasing cyber fraud in India’s digital asset market, and CoinDCX reported identifying more than 1,200 fake websites imitating its domain between April 2024 and January 2026. This surge highlights how scammers exploit trusted brands to mislead investors, while national data indicates that investment scams accounted for a large share of financial fraud losses in 2025.

Besides, this pattern suggests that crypto-related schemes remain a key target for cybercriminal activity, and globally, the situation remains concerning as Web3 platforms lost billions of dollars to hacks and scams in 2025. Consequently, exchanges are under pressure to improve both security systems and user awareness, while CoinDCX has also faced security challenges in the past following a major breach.

A breach in July 2025 led to losses of roughly $44 million from an internal operational account, the company maintained that customer funds were not affected during that incident. The ongoing investigation highlights the growing risks tied to impersonation scams in crypto markets, and it underscores the need for stronger safeguards and increased vigilance among investors.

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