CoinDCX co-founders arrested in ₹71.6 lakh Crypto investment fraud in Thane

Police in Thane have arrested two co-founders of cryptocurrency exchange CoinDCX in connection with an alleged ₹71.6 lakh investment fraud , officials said on Monday.

The action follows an FIR registered on March 16 at Mumbra police station against co-founders Sumit Gupta and Neeraj Khandelwal , along with others, on charges of cheating, criminal breach of trust and fraud.

According to police, the accused allegedly lured investors by promising unusually high returns through cryptocurrency-linked investments and offering a franchise opportunity in a firm purportedly associated with the platform . The scheme was projected as a legitimate extension of crypto trading services, creating a false sense of credibility.

Investigators said such fraudulent schemes are often marketed through online advertisements, including those seen on pirated streaming and download websites , where users are targeted with flashy investment offers and quick-profit claims.

The complainant, a 42-year-old insurance advisor, alleged he was duped between August 2025 and March 2026 after transferring ₹71,60,015 in multiple transactions , both cash and online. The funds were neither returned nor invested as promised, and were instead allegedly misappropriated.

A police team from Mumbra tracked down and arrested the accused from Bengaluru on Saturday. They were produced before a local court in Thane on Sunday and remanded to police custody.

Police said a detailed investigation is underway to uncover the full extent of the fraud and identify whether more victims were targeted through similar investment pitches.