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Cryptocurrency Exchange Owners Accused of Deceiving Investors Through 1,212 Clone Websites, 2026/03/22 10:57:37
The police in the Indian state of Maharashtra have detained the co-founders of one of the largest Indian cryptocurrency exchanges, CoinDCX, Sumit Gupta and Neeraj Khandelwal. The entrepreneurs face allegations of fraud and “deception with the intent to acquire property.”
The case was initiated following complaints from investors who claimed to have lost funds due to the actions of CoinDCX’s owners.
According to the investigation, Gupta, Khandelwal, and four other unnamed individuals established 1212 websites that mimicked CoinDCX’s online platforms. Visitors to these fraudulent sites were encouraged to invest money at high interest rates, but in reality, the victims’ funds were redirected to the scammers’ accounts, law enforcement asserts.
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CoinDCX contends that unknown fraudsters deliberately impersonated Sumit Gupta and Neeraj Khandelwal, while the exchange’s founders are not involved in the criminal scheme. Representatives from CoinDCX stated that the company is cooperating with law enforcement and has provided investigators with all necessary information.
In the summer, the Bangalore police arrested CoinDCX’s software engineer Rahul Agarwal. He was accused of “using insider access” to steal 380 crore rupees (approximately $44 million) from the platform.
In March, the Central Bureau of Investigation (CBI) in India arrested Ayush Varshney, a co-founder of the business technology solutions provider Darwin Labs. The businessman is suspected of creating the infrastructure for the cryptocurrency pyramid GainBitcoin, which has caused estimated losses of around $790 million.
A study conducted by the cryptocurrency exchange MEXC indicates that India is one of the most favored regions globally for crypto fraudsters. Criminals have increasingly employed phishing attacks and offered counterfeit tokens.
