CoinDCX Founders Face Questioning in INR 71 Lakh Crypto Fraud Case

Police have questioned the founders of cryptocurrency exchange CoinDCX as part of an investigation into an alleged investment fraud case involving impersonation, according to Entrackr media reports.

The questioning took place on March 20 at the Bellandur Police Station, following a case registered earlier in Thane. “The founders were called in to assist with the probe. The investigation is focused on a network of individuals who allegedly posed as representatives of the company,” a source aware of the developments said.

The case stems from a First Information Report (FIR) filed on March 16, which names multiple individuals in connection with the alleged fraud. Investigators are examining claims that the accused misused the company’s identity and that of its founders to gain the trust of investors.

According to the complaint, the victim was contacted by individuals claiming to be associated with a crypto investment platform. They allegedly promised high monthly returns of around 10 to 12 percent and shared documents and promotional material to support their claims.

The complainant, an insurance consultant based in Mumbra, alleged that he and two acquaintances collectively lost over INR 70 lakh between August 2025 and March 2026. He said the platform, presented as CoinDCX.pro, appeared to be linked to the well-known exchange but was later found to be fraudulent.

The consultant invested INR 26.6 lakh, while Ajendra Singh Chauhan and Narendra Singh Chauhan invested INR 25 lakh and INR 20 lakh respectively. However, the promised returns did not materialise, and the accused became untraceable.

“When the returns stopped and communication broke down, they tried to verify the offices and identities of those involved but found no trace,” an official said.

In response, the company denied any involvement and described the case as a result of impersonation. “The FIR against our co-founders is false and appears to be part of a larger conspiracy by fraudsters misusing our name,” the company said in a statement.

It added that the complainant was not a registered user of its platform and clarified that it does not run any franchise or guaranteed-return investment schemes. “We have issued public warnings about such scams and are cooperating fully with the authorities,” the statement said.

The firm also noted that it has reported a large number of fake websites to cybersecurity agencies in recent months.

Meanwhile, reports suggesting that the founders had been arrested remain unconfirmed, with no official statement supporting such claims so far.