CoinDCX co-founders have been arrested in India amid allegations of a Rs 71.6 lakh cryptocurrency investment fraud, raising concerns for investors in the digital currency market.
Key Points
- CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal have been arrested in connection with an alleged cryptocurrency fraud.
- The arrests stem from an FIR alleging cheating, criminal breach of trust, and fraud related to cryptocurrency investments.
- A complainant claims to have been defrauded of Rs 71.6 lakh after being promised high returns on investments linked to CoinDCX.
- Police are investigating whether there are additional victims of the alleged investment scheme.
The Thane police have arrested two co-founders of cryptocurrency exchange platform CoinDCX in connection with an alleged fraud of Rs 71.6 lakh, officials said.
The action follows an FIR registered against CoinDCX co-founders Sumit Gupta, Neeraj Khandelwal and others on charges of cheating, criminal breach of trust and fraud.
A 42-year-old insurance advisor, the complainant in the case, alleged he was duped of Rs 71.6 lakh 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, according to the police.
The complainant 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, they said.
A Mumbra police team apprehended the two accused from Bengaluru. They were later brought to Thane and produced before a local court, which remanded them to police custody till Monday, senior police inspector Anil Shinde said.
Ongoing Investigation
"A detailed probe is underway to determine if there are more victims linked to this investment scheme," the official added.
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