CoinDCX Cofounders Get Bail In Alleged Cheating Case

Days after getting arrested, crypto unicorn CoinDCX’s cofounders Sumit Gupta and Neeraj Khandelwal have received bail. Sources told Inc42 that while the founders have now secured their bail, the authorities are now investigating the allegations levelled by the complainant.

The two founders were released on bail on executing a PR bond of ₹50,000 each, with the condition that they shall cooperate with the investigation and trial.

“Admittedly, the allegation and offences are serious in nature. But the role of the accused is not shown,” the court noted.

In a statement, CoinDCX said that the startup and its leadership had “no involvement in the incident and were themselves victims of a fraud perpetrated through impersonation”. Here’s a deeper look at what the case pertains to.

Why Were CoinDCX’s Founders Arrested?

On Friday, Maharashtra Police arrested Gupta and Khandelwal from CoinDCX’s Bengaluru office, in relation to an FIR filed in the Mumbra Police Station on March 16. As per the FIR reviewed by Inc42, the cofounders were charged with Sections 3(5), 316(2), 316(5) and 318(4) of the Bharatiya Nyaya Sanhita (BNS) which pertain to cases of cheating, fraud, and criminal conspiracy.

The complainant Ashish Brijkishor Singh alleged that Akash Rana, identifying himself as a CoinDCX employee, had defrauded him by convincing to invest money in a franchise of the company, luring high returns via cryptocurrency trading.

Singh also claimed that he met Gupta and Khandelwal in Mumbra prior to making an investment. Over time, he and his friends invested a total of more than ₹71 Lakh in cash and online payments over multiple tranches.

Singh further claimed that when asked about the franchise documents and trading access in March, he was initially told by Rana that the platform was facing technical issues and he would receive access in 24-48 hours. Post that, Singh alleges that he couldn’t establish contact with Rana.

What Is CoinDCX Claiming?

The Bengaluru-based cryptocurrency exchange has claimed that the whole situation is a case of scamming and impersonation, with the URL of the fraudulent website being different from the URL of the real platform.

Furthermore, in a statement issued on Sunday, the startup claimed that it was being targeted by fraudsters who are cheating the public at large. “The entire conspiracy falsely claims that funds were transferred in cash to third-party accounts which have no relation to CoinDCX,” the company said.

CoinDCX earlier said that it reported over 1,212 fake websites impersonating the company’s name and nature of business between April 2024 and January 2026, highlighting the extent of scams prevalent in the cryptocurrency ecosystem.

Where Does The Case Stand Now?

Post that statement, the complainant filed an affidavit with the Thane District Court on Monday claiming that he has recovered his money from one of the six accused named in the FIR.

He further said that he has no grievances against the startup, post which a bail application was moved by the founders.

The CoinDCX founders were then sent to judicial custody on Monday as the order was pushed for the next dat and their police remand had already ended.

Incidentally, the other four individuals accused, apart from the CoinDCX founders, remain absconding.

This is not the first time that CoinDCX has landed in a controversy. Last year, the crypto exchange was hit by a major cyberattack, which saw hackers steal assets worth $44 Mn from its internal operational account. Important to note that the Enforcement Directorate’s (ED) Hyderabad Zonal Office has provisionally attached ₹8.46 Cr across 92 bank accounts — including those linked to CoinDCX — under the PMLA (2002) back in November 2025.

Founded in 2018, CoinDCX allows users to trade in cryptocurrencies and other digital assets. The platform claims to have so far served more than 2 Cr users, with quarterly trading volumes north of over ₹2.4 Lakh Cr.

On the financial front, the crypto unicorn posted a net profit of ₹1.7 Cr in FY25, up nearly 15% from ₹1.5 Cr in the previous fiscal. Meanwhile, operating revenue rose 43% to ₹559.6 Cr in the fiscal year under review as against ₹391.8 Cr in FY24.

The post CoinDCX Cofounders Get Bail In Alleged Cheating Case appeared first on Inc42 Media.