India's largest cryptocurrency exchange has emerged from a challenging period after a magistrate court found no prima facie case against co-founders Sumit Gupta and Neeraj Khandelwal, according to TradingView News. The executives were initially detained in March over allegations involving a fake investment scheme that defrauded an insurance consultant of approximately $85,000 through a counterfeit website called 'CoinDCX Pro.' The court's ruling validated the exchange's defense that third-party impersonators had exploited their brand, with the actual founders never meeting the complainant directly.
The vindication comes as CoinDCX revealed staggering statistics about brand impersonation attempts, reporting over 1,212 fake websites mimicking their platform between April 2024 and January 2026, as reported by The Block. This extraordinary volume of fraudulent activity - roughly two fake sites created daily - underscores the systematic nature of crypto-related scams targeting Indian investors and highlights the broader cybersecurity challenges facing digital finance platforms in the region.
