On March 24, 2026, the Indian cryptocurrency exchange CoinDCX issued a comprehensive clarification regarding the arrest of its co-founders, Sumit Gupta and Neeraj Khandelwal, by the Thane police. The company’s official statement aims to distance its leadership and legitimate platform from a 71.6 lakh rupee fraud case that has dominated national headlines over the last 48 hours. CoinDCX maintains that the First Information Report (FIR) filed at the Mumbra police station is the result of a massive “brand impersonation conspiracy” rather than any misconduct by the founders themselves. According to the exchange, the complainant was targeted by a sophisticated network of fraudsters who utilized fake websites and impersonated the founders to lure investors into a fraudulent “franchise” scheme. The company emphasized that no funds related to this case ever entered CoinDCX’s audited bank accounts or its digital asset wallets. By issuing this clarification, CoinDCX is attempting to stabilize its 20-million-user base and prevent a wider panic that could lead to a bank run on the exchange’s liquidity.
Exposing the Network of 1,212 Fake Websites and Impersonation Tactics
The core of CoinDCX’s clarification centers on the unprecedented scale of the cybercrime operation targeting its brand. The exchange revealed that between April 2024 and early 2026, it identified and reported over 1,212 fraudulent websites that were designed to mirror the look and feel of the official CoinDCX platform. These “cloned” sites were used to collect cash and bank transfers from unsuspecting victims under the guise of high-yield investment opportunities. The founders’ legal counsel argued in court that the police’s current investigation has mistakenly conflated these external criminal activities with the exchange’s actual corporate operations. CoinDCX has provided the Thane police with a detailed log of its previous reports to the Cyber Cell, proving that it had proactively warned the public about these specific impersonators long before the current FIR was registered. This evidence is intended to show that Gupta and Khandelwal are not the perpetrators of the fraud but are instead victims of a reputation-damaging campaign executed by an organized digital crime syndicate.
Navigating the Remand Period and Restoring Institutional Confidence
As Gupta and Khandelwal remain in police custody following a remand order from the Thane holiday court, the exchange is focusing its efforts on maintaining institutional and retail trust. The clarification reaffirms that CoinDCX’s core trading engine, cold storage wallets, and “7-Layer Security” protocols remain fully operational and unaffected by the ongoing legal proceedings. The company has also invited third-party auditors to verify its current reserves, aiming to prove that user assets are “hardened” against the volatility of the founders’ personal legal challenges. Despite these efforts, the 2026 market remains cautious, as the arrest of high-profile crypto executives in India often serves as a trigger for increased regulatory scrutiny across the entire sector. For the 2026 observer, the resolution of this “impersonation defense” will be a defining moment for the Indian crypto industry, determining whether platforms can be held liable for the actions of malicious actors who exploit their brand identity in a loosely regulated digital environment.