Court grants bail to CoinDCX founders in Rs 71 lakh fraud case

Mumbai: Cryptocurrency exchange, CoinDCX promoters Sumit Gupta and Neeraj Khandelwal, who were arrested by the Thane Police on Saturday in connection with an alleged criminal breach of trust case, were released on bail by a local court Tuesday.

The cryptocurrency exchange co-founders were apprehended from Bengaluru following a complaint that alleged the complainant was defrauded of ₹71.60 lakh.

The Thane Police had registered an FIR against six individuals, including Gupta and Khandelwal, accusing them of cheating the complainant under the pretext of cryptocurrency investment and franchise opportunities linked to CoinDCX.


Also Read: Crypto exchange Kraken freezes IPO plans, CoinDesk reports

The complainant, an insurance advisor, in his complaint had alleged that he was lured between August 2025 and February 2026 with promises of high returns and regulatory approvals. The accused allegedly collected funds through cash and bank transfers but failed to deliver the promised franchise or returns and later became untraceable.

Appearing for the accused, Senior Advocate Pranav Badheka, along with Advocates Rajan Salunkhe and Abhijeet Sawant, argued that the case was one of mistaken identity. The defence submitted that the complainant, Ashish Singh, had been duped of ₹71 lakh by unidentified persons who impersonated the CoinDCX founders and misused the company’s name.

The counsel contended that Gupta and Khandelwal had never met the complainant and were not involved in the alleged transactions. They further pointed an earlier order obtained from the Delhi High Court by CoinDCX (Neblio Technologies) against unknown persons unlawfully using the company’s name. The defence also highlighted that the company had issued public disclaimers warning users about such impersonation scams in the market.

According to the defence, these facts demonstrated the bona fides of the accused, who were arrested in Bengaluru and brought to Mumbra Police Station, where they remained in detention since Saturday.

Also Read: India is right to act on offshore crypto platforms but it must also build a fairer market

Earlier CoinDCX, in a statement posted on X, termed the FIR “false” and claimed it was part of a conspiracy involving impersonators posing as the company’s founders to defraud the public. “The entire conspiracy falsely claims that funds were transferred in cash to third-party accounts which have no relation to CoinDCX,” the company said, rejecting the allegations. It added that it is cooperating with law enforcement authorities and continues to focus on user awareness to prevent such fraud.

In its order, the Thane court observed that a prima facie offence was not made out against the accused.

Judicial Magistrate First Class Nitesh B. Rathod directed that Gupta and Khandelwal be released on bail upon executing a personal bond of ₹50,000 each and furnishing surety of a like amount, subject to the condition that they cooperate with the investigation and trial.