CoinDCX co-founders arrested in fraud case

Two co-founders of cryptocurrency platform CoinDCX have been arrested by Thane police in connection with an alleged fraud case involving ₹71.6 lakh (about $76,223), officials confirmed on Monday.

According to reporting by The Hindu, the arrests follow a First Information Report (FIR) registered on 16 March at Mumbra police station in Thane. The complaint names co-founders Sumit Gupta and Neeraj Khandelwal, along with other unidentified individuals, on charges including cheating, criminal breach of trust and fraud.

Investor alleges ₹71.6 lakh loss

A 42-year-old insurance adviser who claims he was defrauded of ₹71.6 lakh between August 2025 and March 2026 filed the complaint. The victim alleged he was persuaded to invest in a firm said to be associated with the cryptocurrency exchange, with promises of high returns.

Police said the complainant was also offered a franchise opportunity as part of the scheme. He subsequently transferred ₹71,60,015 through a combination of cash and online transactions.

However, the promised returns never materialised, and the funds were allegedly misappropriated.

Arrests and ongoing investigation

A police team arrested the two accused in Bengaluru on Saturday. They were later brought to Thane and produced before a local court on Sunday.

Senior police inspector Anil Shinde confirmed that the court remanded the accused to police custody until Monday.

Authorities have launched a detailed investigation to determine whether more victims are linked to the alleged investment scheme.

CoinDCX denies allegations

In a statement issued on 21 March, CoinDCX rejected the allegations, describing the FIR as “false” and part of a broader conspiracy involving impersonators. The company said fraudsters had been misusing its name to deceive investors, claiming that the transactions cited in the complaint were made to third-party accounts with no connection to the platform.

CoinDCX further stated that it has been actively working with authorities to combat such scams. Between 1 April 2024 and 5 January 2026, the company reported identifying more than 1,212 fake websites impersonating its official domain. Police have urged the public to exercise caution and verify the authenticity of investment platforms before transferring funds, particularly in cases involving digital assets and franchise-based opportunities.

Crypto crime hits record $154 billion in 2025

Chainalysis’ 2026 Crypto Crime Report found that cryptocurrency addresses linked to illegal activities received at least $154 billion in 2025, marking a record year for measurable on-chain crime. The surge is largely attributed to nation-state actors such as Russia and North Korea, who are increasingly using blockchain networks to evade sanctions and conduct major cyber theft operations. The report also points to the rise of professionalised money-laundering networks, particularly Chinese-language groups offering “as-a-service” laundering models.

In other news, India’s cryptocurrency sector is moving into a new phase as regulators tighten oversight. From 1 April 2027, the government will begin sharing cross‑border crypto transaction data with other countries, marking a shift towards stricter tracking, taxation, and regulation of digital assets.