CoinDCX sets up ₹100 crore fund for customer education after arrest

Crypto exchange launches Digital Suraksha Network to boost fraud awareness, investor education and law enforcement support after co-founders' wrongful arrest

Days after scammers impersonated CoinDCX — leading to the wrongful arrest of co-founders Sumit Gupta and Neeraj Khandelwal — the company has announced a Rs 100 crore fund to establish a Digital Suraksha Network (DSN).

 

CoinDCX has invited regulators, industry participants, and associated stakeholders to take part in the initiative.

 

The network is expected to invest in investor education across digital financial products, including crypto, by partnering with financial literacy programmes, create multi-language content, and build a public platform powered by fraud intelligence application programming interfaces (APIs).

 

“We will build an open API that makes this fraud intelligence available in real time to law enforcement, financial platforms, telecom providers, and browser companies. We are inviting every crypto exchange, fintech platform, bank, and digital lender in India to share the fraudulent/namesake websites,” CoinDCX co-founders said in a statement.

 

 

The company claims to have flagged over 1,200 fraudulent websites impersonating its platform.

 

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

 

They were later granted bail after the company argued that the case involves impersonation through a fraudulent website — coindcx.pro — created by unknown actors.

 

For context, the Reserve Bank of India (RBI) has mandated the rollout of an exclusive ‘.bank.in’ internet domain for all Indian banks, aimed at preventing digital financial fraud.

 

From April 2025, all Indian banks will be required to migrate to this new domain to help customers distinguish legitimate banking websites from fraudulent ones.

 

CoinDCX added that the Digital Suraksha Network will fund training programmes for state cybercrime cells on blockchain forensics and digital asset tracing, a dedicated rapid-response unit that provides technical support to law enforcement on active fraud cases, and technology grants for central and state Cyber Crime Coordination Centres.

 

“We are calling on Sebi (Securities and Exchange Board of India), FIU-IND (Financial Intelligence Unit – India), and the Ministry of Finance to work with the industry on common cyber safety standards for all digital financial platforms in India,” it said.

 

“Digital Suraksha Network will commission independent research on the scale of digital fraud, fund a multi-stakeholder working group to draft recommended standards, and publish quarterly ‘State of Digital Trust’ reports with transparent data,” it added.

 

In 2024, the company had constituted a Crypto Investor Protection Fund (CIPF). The total corpus value of the fund was recorded at Rs 55.54 crore as of January 2026.