- Indian crypto exchange CoinDCX has denied fraud allegations, calling a police FIR against its co-founders a “false” conspiracy by impersonators.
- A victim alleges he and his associates lost a total of $76,000 in a fake crypto investment scheme that promised 10-12% returns using the CoinDCX brand.
- The exchange warned it is being targeted by fraudsters and has reported over 1,212 fake websites impersonating its platform in under two years.
- A compliance expert cited a “larger issue” of the absence of clear regulatory standards and investor protection frameworks in India.
Major Indian cryptocurrency exchange CoinDCX dismissed fraud allegations on Sunday, claiming a police case stems from impersonators posing as its founders to cheat investors. The exchange asserted in a post on X that the FIR is “false and filed as a conspiracy” against the firm.
This response follows a report that co-founders Sumit Gupta and Neeraj Khandelwal were questioned over an investment scam. A victim was reportedly lured by a scheme using CoinDCX branding and documents promising high returns.
He reported losing his $28,000 investment, while two associates invested $26,000 and $21,000. The exchange stated the complainant has no association with its genuine platform and that funds were not routed through its systems.
CA Sonu Jain of 9Point Capital called this “a classic case of impersonation fraud,” a pattern he said is increasingly common. He noted that founders being questioned is a procedural step and should not imply culpability.
However, Jain emphasized the “absence of clear regulatory standards and investor protection frameworks in India” allows such incidents to persist. He urged regulators to define platform responsibilities and improve coordination to curb scams proactively.
Meanwhile, CoinDCX revealed it reported over 1,212 fake websites mimicking its platform between April 2024 and January 2026. The exchange said it is cooperating with law enforcement and working to raise user awareness.
This incident follows a volatile period for the exchange, which disclosed a $44.2 million treasury breach last July. A software engineer at the firm was Hacker-used-his-login-to-siphon-funds-got-call-from-Germany/articleshow/123008462.cms” target=”_blank”>arrested for allegedly enabling that hack.
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