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Court Drops Fraud Case Against CoinDCX Founders, Says No Evidence Found

Court Drops Fraud Case Against CoinDCX Founders, Says No Evidence Found

The Thane court rules no evidence linking founders to alleged crypto scam.

Written by Rahul Dhingra, Edited by Rohan Pal | Updated: 25 March 2026 17:16 IST

Court Drops Fraud Case Against CoinDCX Founders, Says No Evidence Found

Photo Credit: Unsplash/Kanchanara

The scam was carried out using a fake platform posing as a crypto service

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Highlights

Court finds no evidence against CoinDCX co-founders
Fraud linked to impersonators using a fake platform
Case underscores rise in crypto-related impersonation scams

The fraud case linked to impersonation against CoinDCX founders has been called off by a court in Thane, thereby granting bail to both co-founders, Sumit Gupta and Neeraj Khandelwal. The court observed that no prima facie evidence connected them to the alleged Rs. 71 lakh cheating complaint. Investigators and the complainant both confirmed that the fraud was carried out by other individuals posing as the founders. In light of the ongoing investigation surrounding cryptocurrency-related fraud cases in India, the ruling provides significant relief to the exchange's leadership.

Ruling Highlights Risks of Impersonation in Crypto Scams

The case started from allegations that an investor was duped through a fraudulent scheme falsely linked to CoinDCX. However, court proceedings showed that the complainant had recovered the money from one of the accused after being duped by people posing as the founders. The court also noted that the co-founders were not present at the location where the alleged offence took place, further weakening the case against them.

CoinDCX welcomed the ruling in posts on X, stating that the processings validated its claim of a “third-party impersonation” scam. The company confirmed that neither the exchange nor its founders were involved, claiming that the fraud was executed through a bogus platform. It also urged users to remain cautious and interact only with official platforms, highlighting the growing risks of impersonation scams in the crypto space.

Bitcoin Holds Ground as Market Waits for Clear Direction

Important announcement pic.twitter.com/aDvTRN80G0
— CoinDCX : India Ka Crypto Coach (@CoinDCX) March 24, 2026

The development comes after the co-founders were earlier arrested in connection with the case, which had raised concerns around accountability in the crypto ecosystem. At the time, CoinDCX had maintained that the allegations stemmed from misuse of its brand by fraudsters operating under the name “CoinDCX Pro,” a fake platform used to impersonate the exchange. The company had also warned users about such fraudulent websites and impersonation attempts targeting investors.

Overall, CoinDCX and its leadership benefit from the court's decision, which also highlights the growing danger of impersonation scams in the cryptocurrency industry. The ruling may rebuild trust in the platform, but it also highlights the need for greater safety measures and user education to avoid similar incidents in the future.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

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Further reading: crypto news, Crypto Scam, CoinDCX

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More