India's largest cryptocurrency exchange by valuation finds itself navigating turbulent legal waters as its co-founders battle fraud allegations that the company claims stem from sophisticated impersonators. Sumit Gupta and Neeraj Khandelwal were arrested by Thane Police over allegations totaling ₹71.6 lakh, though CoinDCX maintains the charges are baseless and result from coordinated brand exploitation.
The exchange has presented compelling evidence to support its defense, revealing over 1,212 fake websites impersonating coindcx.com between April 2024 and January 2026 - averaging nearly two fraudulent sites created daily. According to CoinDCX, fraudsters used fake domains like coindcx.pro to mislead victims with promises of franchise opportunities and high returns. This case highlights the growing challenge of brand impersonation in India's rapidly expanding digital finance ecosystem, where regulatory frameworks still rely heavily on general criminal laws rather than dedicated cryptocurrency licensing structures.
