CoinDCX co-founders Gupta, Khandelwal granted bail in alleged fraud case

Court finds no prima facie case against Sumit Gupta and Neeraj Khandelwal, who claim they were victims of impersonation in Rs 71.4 lakh fraud case

Crypto exchange platform CoinDCX on Tuesday said its co-founders, Sumit Gupta and Neeraj Khandelwal, have been granted bail after being arrested last week in an alleged Rs 71.4 lakh cheating case, with the court observing that no prima facie case was made out against them.

 

Magistrate Nilesh Rathod, while allowing their bail plea, ordered the duo’s release upon furnishing a surety of Rs 50,000 each. 

Gupta and Khandelwal’s legal team argued before the court that they were victims of a “mistaken identity” and fraudulent impersonation. 

CoinDCX said that its leadership had no involvement in the incident and were themselves victims of a fraud perpetrated through impersonation.

 

“CoinDCX continues to operate normally without any disruption. Trading, deposits, withdrawals, and all user services remain fully operational. User assets stay secure, supported by full proof of reserves and independent audits. The court proceedings do not affect the platform’s operations or financial stability,” the company said in a statement.

 

The company’s co-founders were called in by the police for questioning last week after a complainant alleged that they were promised 10–12 per cent monthly returns by CoinDCX.

 

“CoinDCX strongly condemns such illegal activities. Responsibility lies with those who plan and carry out these scams, not with institutions whose identities are unlawfully exploited,” the company said.

 

The firm further added that the case involves impersonation through a fraudulent website — coindcx.pro — that was created by unknown actors.

 

“CoinDCX’s only official platform is coindcx.com. The fraudulent site has no direct or indirect connection to CoinDCX or its subsidiaries,” the firm added.

 

With PTI inputs