CoinDCX CEO Sumit Gupta has broken his silence after being briefly detained in a fraud case, calling the experience “shocking” and “very disheartening.”
In response to the incident, CoinDCX launched the Digital Suraksha Network and pledged 100 million rupees (approximately $10.5 million) to strengthen India’s cyber safety infrastructure.
The program includes:
- 24/7 WhatsApp number to check for suspicious links
- Open API to share fraudulent site data
- Training for law enforcement agencies on blockchain forensics and digital asset tracking
- Nationwide awareness campaign urging users to verify platforms before trading
No single company can solve these problems alone, Gupta said, as fraud networks are smart, cross borders, change daily, and are even harder to catch thanks to AI. He called on all platforms, regulators and Indians in the digital finance space to participate so that those building startups in the country can do so without fear and with confidence.
The CEO of CoinDCX said this is not just an issue for cryptocurrencies, but for any company with a digital footprint.
Mr. Gupta said this effort is just the beginning and called for broad participation across digital finance to build what he called a “shared immunity system” against fraud.
Details about Mr.Gupta’s arrest
Mr. Gupta and co-founder Neeraj Khandelwal were arrested on March 21 on charges of fraud. However, the court granted them bail on March 24, saying the original case had not been filed.
The CEO said that the incident was caused by a fake website, coindcx.pro, run by an impersonator who has no connection to CoinDCX. He stressed that no funds will be moved through the exchange and no transactions will take place on its platform. The complainant also reportedly told the court that he had no direct dealings with the company or its founder.
The incident raised larger questions about how Indian authorities deal with digital fraud, especially in a rapidly changing field like cryptocurrency. Mr. Gupta warned that in the ecosystem, it is difficult to distinguish between genuine and malicious companies by name, putting both users and founders at risk.
He further stated: “This could happen to any founder, any company.” Mr. Gupta noted that the risk of identity fraud is increasing due to smarter AI-powered tools.
Related: CoinDCX co-founder arrested in P71.6 million cryptocurrency fraud case
