New Delhi, March 21: Indian cryptocurrency exchange CoinDCX has formally addressed a First Information Report (FIR) filed against its co-founders, Sumit Gupta and Neeraj Khandelwal, categorising the legal action as the result of a sophisticated "impersonation conspiracy". In a statement released following the filing, the company revealed it has identified over 1,212 fraudulent websites designed to mimic its platform, suggesting that the complainants were victims of third-party scammers rather than the exchange itself. According to a report in the Economic Times, both Gupta and Khandelwal were arrested following an FIR alleging cheating and financial fraud.

CoinDCX Reveal Nature of the Impersonation Fraud

According to the company's internal investigation, malicious actors have been using the CoinDCX brand name, logo, and the identities of its executives to lure unsuspecting investors into high-yield "staking" and "investment" schemes. These scams typically operate through fake websites, Telegram groups, and WhatsApp channels that appear identical to the official CoinDCX interface. CoinDCX Hacked: Indian Crypto Exchange CEO Sumit Gupta Announces Recovery Bounty Program After Cyberattack, Reward up to 25%.

CoinDCX Says 1,212 Fake Websites Mimicking Crypto Exchange to Scam Investors

The exchange clarified that the FIR, which alleges financial irregularities, was likely initiated by individuals who lost funds to these clone platforms. CoinDCX maintains that its legitimate infrastructure remained secure and that no user data or funds from its official ecosystem were compromised in these incidents.

The Scale of the 'Fake Website' Network

The discovery of 1,212 fake websites highlights the growing scale of "pig butchering" and phishing scams within the Indian crypto landscape. These fraudulent sites often use slightly altered URLs or "look-alike" domains to bypass basic security checks by users. CoinDCX stated it has been proactively working with the Ministry of Electronics and Information Technology (MeitY) and various cybercrime cells to flag and take down these domains. The company emphasised that it does not offer investment advice via personal messaging apps or solicit funds through unauthorised third-party links.

Legal Response and Corporate Strategy

In response to the FIR, CoinDCX's legal team is moving to provide evidence to law enforcement demonstrating the disconnect between the official exchange and the fraudulent entities. The company has expressed full cooperation with the authorities to help identify the actual perpetrators behind the impersonation network. "The FIR is based on a fundamental misunderstanding of the platform's operations and the external fraud occurring in the market," a company spokesperson noted. The exchange is now focusing on a "transparency-first" approach, urging users to verify all communications through the official CoinDCX app and website. CoinDCX Co-Founder Neeraj Khandelwal Dismisses Coinbase Acquisition Rumours.

Crypto Scams on the Rise in India

This incident coincides with an uptick in cryptocurrency-related cybercrime across major Indian cities. As the domestic market sees renewed interest in digital assets, scammers have pivoted toward "impersonation-as-a-service," where they steal the credibility of established Indian unicorns to bypass investor scepticism. Industry experts suggest that this case could set a precedent for how crypto platforms are held accountable for third-party brand misuse and the legal protections available to founders when their identities are co-opted for criminal activity.

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TruLY Score 5 – Trustworthy | On a Trust Scale of 0-5 this article has scored 5 on LatestLY. It is verified through official sources (Official X Account of CoinDCX). The information is thoroughly cross-checked and confirmed. You can confidently share this article with your friends and family, knowing it is trustworthy and reliable.

(The above story first appeared on LatestLY on Mar 21, 2026 11:51 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).