CoinDCX, an Indian cryptocurrency exchange backed by Coinbase, announced that its co-founders, Sumit Gupta and Neeraj Khandelwal, have been arrested by police in connection with a scam involving fake websites. The company stated that the First Information Report (FIR) was filed due to identity theft incidents, where fraudsters created numerous fake websites impersonating CoinDCX to conduct fraud. Approximately 1,212 such fraudulent websites have been identified. CoinDCX is cooperating with the investigation and maintains that the co-founders were not involved in any illegal activities.