Indian Court Acquits CoinDCX Founders in Impersonation Fraud

• The court has released CoinDCX founders on bail following fraud accusations.
• Gupta and Khandelwal were impersonated by a third party to defraud an investor.
• CoinDCX demanded that fraudsters should be held accountable, not lawful institutions.

An Indian magistrate in Thane has granted bail to CoinDCX co-founders Sumit Surendra Gupta and Niraj Ashok Khandelwal in a ₹71 lakh cheating complaint against them, linked to a fake trading platform posing as their crypto exchange.

“No Case” Against CoinDCX Co-Founders

According to a March 23 common order by the court on their bail applications, both co-founders were entitled to bail because no one made a case against them. The court noted that there was no evidence to indict them, even from the initial stages. For context, Gupta and Khandelwal were taken into custody last Saturday and remained in detention throughout the weekend over an allegation that they had duped an investor.

In the court’s ruling, the magistrate stated that the investigation officer did not object to their release, noting that the accused were not in Mumbra at the time of the alleged offence. The court found that some other person posing as a CoinDCX founder cheated the acclaimed victim.

Hold Fraud Perpetrators Accountable

CoinDCX released a statement on March 24 backing the court’s decision, reiterating that unknown individuals impersonated its co-founders, allegedly cheating the victim. The crypto exchange echoed that the complainant confirmed they had not interacted with either Gupta or Khandelwal.

According to CoinDCX, the matter is a case of third-party impersonation, with unknown actors posing as CoinDCX founders engaging in fraud. The crypto platform further clarified its position, noting that the impostors used the website coindcx.pro, a fake platform unconnected with CoinDCX, to run their scheme.

In the meantime, CoinDCX seized the opportunity to highlight broader issues facing the crypto industry, including rising impersonation and phishing threats. Bad actors have resorted to misusing trusted brands and identities to bait unsuspecting victims. The crypto exchange demanded that the spotlight be focused on the perpetrators, not the institutions being unlawfully impersonated.

The Real Impostor Was Found

Meanwhile, the judge noted that the complainant filed an affidavit stating that another accused, Rana, had repaid the claims, exonerating the CoinDCX co-founders. The complainant stated that Gupta and Khandelwal were not the individuals he met in a Kausa Mumbra cafe, where he struck the fraudulent deal. 

Having settled the matter amicably, the court ordered that the CoinDCX co-founders be released on bail upon fulfilling a 50,000 Indian rupee bond, equivalent to about $530, on the condition that they cooperate with the investigation and trial.

Related: CoinDCX Co-Founders Arrested in ₹71.6 Lakh Crypto Fraud Case