CoinDCX founders arrested on allegations of criminal breach of trust
23 Mar 2026, 10:43 AMCoinDCX said the FIR is “false” and attributed the case to an impersonation scheme involving individuals posing as the company’s founders.
Team Head&Tale
Share the story on
The founders of crypto exchange CoinDCX, Sumit Gupta and Neeraj Khandelwal, were arrested on Saturday by the Thane Police on allegations of criminal breach of trust, officials said.
The founders were apprehended from Bengaluru and produced before a holiday court in Thane. The court remanded them to police custody until Monday.
The Thane Police have registered an FIR against six individuals, including Gupta and Khandelwal, in connection with an alleged fraud of Rs 71.6 lakh.
According to the complaint, an insurance advisor was lured between August 2025 and February 2026 to invest in cryptocurrency and a franchise opportunity linked to CoinDCX, with assurances of high returns and regulatory approvals. The complainant alleged that payments were made in cash and through bank transfers, but the promised franchise and returns were not delivered. He further claimed that the accused later became untraceable.
Police have invoked relevant provisions of the Bharatiya Nyaya Sanhita (BNS) and initiated an investigation.
In a statement posted on X, CoinDCX said the FIR is “false” and attributed the case to an impersonation scheme involving individuals posing as the company’s founders. The company stated that it has issued public warnings about fraudsters misusing its brand, including through fake websites.
"The entire conspiracy falsely claims that funds were transferred in cash to third-party accounts which have no relation to CoinDCX," stated the company, which last year said it was raising capital from existing investor Coinbase at a valuation of $2.45 billion.
The company further said that it is cooperating with law enforcement authorities.
Last year in November, the Enforcement Directorate had provisionally attached assets worth Rs 8.46 crore held in 92 banking and cryptocurrency accounts including CoinDCX as part of a probe into a cyber fraud operation in the country.
Last month, the broader fintech and financial services industry war rocked by the news of the arrest of Fino Payments Bank's Managing Director and CEO Rishi Gupta.
Who Reads Us
“I enjoy reading The Head and Tale for their coverage on the Fintech landscape. The reporting is incisive and honest, and it demonstrates a sharp understanding of the industry and the issues that concern it. I'd like to extend my best wishes to Arti for her continued success.”
“Well-researched, informative and analysis based reporting makes an interesting read. 'The Head and Tale' news portal has been demonstrating this quite well covering fintech and emerging tech sectors. Their timely updates, exclusive stories and different perspectives on these sectors help me stay informed. Kudos to Arti Singh for pursuing her passion and best wishes to the team.”
“The Head and Tale stands out for its deep industry knowledge and impressive network of sources. I especially appreciate that the reporting remains independent, rarely resorting to paid puff pieces, making it a publication I can genuinely trust. Having followed Arti’s work for years, I’ve come to rely on The Head and Tale for its unparalleled insight and truly independent coverage. Arti’s long-standing presence in the sector means her reporting is always informed, with access few can match.”
“What I really appreciate about The Head and Tale is that it doesn’t just report the news, it interprets it. The stories are well-researched, comprehensive, and bold. Arti brings a fearless lens to reporting, often asking the uncomfortable but necessary questions. She makes you pause, reflect, and rethink what it all means for the payments and fintech ecosystem. It’s rare to find journalism that’s this sharp, timely, and relevant to the work we do every day.”
“I’ve always valued journalism that goes beyond surface-level headlines. The Head and Tale does exactly that - it connects the dots, asks the tough questions, and brings clarity to the shifts shaping our evolving industry. I’ve even encouraged my team members to subscribe, because staying informed through credible, deeply reported stories is as important as building products. For me, The Head and Tale has become part of essential reading.”
