Synopsis
CoinDCX is investing Rs 100 crore over five years to combat digital fraud and boost consumer awareness. This initiative follows the recent arrest and subsequent bail of its founders in connection with an alleged investment scam. The funds will enhance cybersecurity, launch an AI-powered helpline, and support law enforcement training nationwide.“We are committing Rs 100 crore over the next three to five years to strengthen cybersecurity and tackle the rising wave of digital fraud, which has already led to lakhs of complaints across the country,” said Sumit Gupta, cofounder, CoinDCX.
Founded by Gupta and Neeraj Khandelwal, CoinDCX enables users to buy, sell, and trade a wide range of cryptocurrencies, and also offers other crypto-related services. The founders were arrested by Thane Police earlier this month in an alleged case of criminal breach of trust. They were subsequently granted bail by a local court.
Speaking with ET, Gupta said the company will deploy the Rs 100 crore across four broad areas, including setting up an AI-powered WhatsApp helpline for users to verify links, platforms, and offers before transacting, and building an API to share data on over 1,200 identified fraudulent websites in real time with exchanges, banks, and fintech firms.
The money will also be used to support cyber safety infrastructure and training programmes for law enforcement, as well as roll out a nationwide fraud prevention initiative aimed at improving consumer awareness and enabling safer participation in digital finance. Indians lost roughly Rs 22,000 crore just on digital scams, he added.
Commenting on the absence of regulations around cryptocurrency trading in India, Gupta said that this might have played a role in the situation the founders found themselves in.
The complainant had alleged that he was defrauded of Rs 71.6 lakh by CoinDCX and its founders. Subsequently, it was discovered that the matter pertained to another platform with a similar name which misled and defrauded people.
“CoinDCX was not involved, no funds moved through our platform, and no transactions took place on our exchange. The complainant confirmed in court that there was no interaction with us, and there is no case against us at all. We have received a clean chit, but this shows that if it can happen to us, it can happen to any founder in the country,” explained Gupta.
Founded in 2018, CoinDCX became India’s first crypto unicorn in August 2021 after raising $90 million in a round led by Facebook cofounder Eduardo Saverin’s B Capital. Since inception, the startup has raised $247 million in equity and was last valued in October 2025 at $2.4 billion. The company closed FY25 with a revenue of Rs 571 crore and a profit of Rs 17.2 crore.
