Sumit Gupta and Neeraj Khandelwal, co-founders of India's largest cryptocurrency exchange CoinDCX, have been arrested by Thane police on fraud charges. The arrest follows a complaint by an insurance advisor who alleged a loss of approximately $85,000 through a fraudulent scheme linked to CoinDCX. The exchange, however, claims the fraud was perpetrated by impostors using counterfeit websites, not its official platform. CoinDCX highlighted that over 1,200 fake sites mimicking its domain have been reported since April 2024. This incident marks the second arrest related to CoinDCX within a year, following the detention of a software engineer connected to a $44 million hack in July 2025. CoinDCX, established in 2018, achieved a valuation of $2.45 billion in October 2025 after receiving investment from Coinbase Ventures.