Sumit Gupta and Neeraj Khandelwal, the cofounders of CoinDCX, have been released on bail just days after their arrest. Authorities are currently investigating the allegations made against them.
The founders secured their bail by posting a PR bond of ₹50,000 each, with the stipulation that they will cooperate with the ongoing investigation and trial.
The court remarked, “While the allegations are serious, the role of the accused has not been clearly established.”
CoinDCX has stated that the company and its leadership are victims of a fraud involving impersonation. The case stems from a complaint filed by Ashish Brijkishor Singh, who claimed he was deceived by an individual posing as a CoinDCX employee.
Singh alleged that he was convinced to invest in a franchise of CoinDCX, lured by promises of high returns from cryptocurrency trading. He and his associates reportedly invested over ₹71 Lakh.
After inquiries about franchise documents and trading access, Singh claimed he lost contact with the impersonator, leading to his complaint. CoinDCX emphasized that the fraudulent website used a different URL than their official site, highlighting the prevalence of scams in the cryptocurrency sector.
In a recent affidavit, Singh stated he has recovered some of his money from one of the six accused, and he expressed no grievances against CoinDCX, prompting the founders to seek bail.
Following their judicial custody, the founders' police remand had ended, and the remaining four accused are still at large.
This incident is not CoinDCX's first controversy; the exchange previously suffered a cyberattack that resulted in the theft of assets worth $44 million. Additionally, the Enforcement Directorate has attached ₹8.46 Crore across various bank accounts linked to the company under the PMLA.
Founded in 2018, CoinDCX has gained a significant user base, claiming over 2 Crore users and reporting substantial trading volumes. In FY25, the company reported a net profit of ₹1.7 Crore, reflecting growth from the previous year.
