CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal have been arrested by Thane Police amid allegations of involvement in a crypto investment fraud scheme. The arrests follow a complaint from an insurance consultant who claims to have lost approximately 71 lakh Indian rupees ($75,000) after being misled by a fraudulent website impersonating CoinDCX. While the company asserts that the FIR is part of a conspiracy involving impersonators, the incident underscores significant concerns regarding security and fraud in India’s burgeoning crypto market.
This development is particularly relevant as it highlights the increasing prevalence of online investment scams in India, which accounted for 76% of financial losses in 2025, according to the Ministry of Home Affairs. CoinDCX, valued at around $2.45 billion, has been under scrutiny for its security protocols, especially following a major hack in July 2025 that resulted in a loss of $44 million from an internal account.
Market professionals should closely monitor CoinDCX’s response and any regulatory implications that may arise from this case, as it could influence investor confidence and the broader crypto landscape in India.
Source: cointelegraph.com