The CoinDCX co-founders, arrested in a Rs 71.6 lakh cryptocurrency fraud case, may be released on bail after the complainant recovered his investment and withdrew his grievance, though the police investigation continues.
The complainant in the Rs 71.6 lakh cheating case in which cryptocurrency exchange platform CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal were arrested told a Thane court on Monday that he had recovered his invested amount from another accused and no longer has any grievance in the matter.
During the proceedings, the 42-year-old complainant filed an affidavit stating he had received the funds from one of the six accused in the case.
The complainant further stated that he does not know the two arrested co-founders, following which Gupta and Khandelwal moved a bail application before the court. It is expected give an order on their plea on Tuesday.
The police, however, said the probe remains ongoing despite the complainant's affidavit and all efforts are on to nab four other accused.
The arrests were made following an FIR registered on March 16 at Mumbra police station here against Gupta, Khandelwal and four others on charges of cheating, criminal breach of trust and fraud, according to officials.
The complainant, a 42-year-old insurance advisor, had claimed he was duped of Rs 71.6 lakh between August 2025 and March this year after being lured by promises of high returns by investing in a firm, purportedly associated with the cryptocurrency platform.
He was also offered a franchise opportunity, he said in his complaint.
The complainant, a resident of Mumbra, transferred Rs 71,60,015 through cash and online transactions at different times. However, the invested amount was not returned, and instead the funds were allegedly misappropriated, as per police.
A Mumbra police team apprehended Gupta and Khandelwal from Bengaluru on Saturday. They were later brought to Thane and produced on Sunday before a local court, which remanded them in police custody till Monday, senior police inspector Anil Shinde said.
The company, however, in a statement on Monday, claimed, "The FIR filed against our co-founders is false, and filed as a conspiracy against CoinDCX by impersonators posing as Founders of CoinDCX and cheating the public at large."
"We have taken cognisance of the fact and published a notice to public at large on our website that CoinDCX is being targeted by fraudsters. The entire conspiracy falsely claims that funds were transferred in cash to third-party accounts which have no relation to CoinDCX," it added.
Brand impersonation and related cyber frauds are an increasing concern in India's digital finance ecosystem, and CoinDCX strongly condemn such actions, it said.
The company further said it is fully committed to supporting authorities in addressing such misconduct. "Between April 1, 2024 and January 5, 2026, we have reported over 1,212 fake websites impersonating coindcx.com," it said.
"We are fully cooperating with the relevant law enforcement authorities.