CoinDCX Launches ₹100 Crore Digital Suraksha Network Post Founders’ Arrest

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CoinDCX Launches ₹100 Cr ‘Digital Suraksha Network’ After Founders’ Arrest

Key Highlights

  • Co-founders Sumit Gupta and Neeraj Khandelwal were detained on March 21 in a ₹71.6 lakh fraud case but granted bail on March 24 after no prima facie evidence was found.
  • The scam was executed via a fake domain (coindcx.pro) by impersonators, with no direct connection to CoinDCX or its founders.
  • CoinDCX unveiled D.S.N., a ₹100 crore initiative featuring a 24×7 WhatsApp helpline, Fraud Intelligence API, law enforcement training, and nationwide awareness programs.

Okay, so after being released from police custody in Thane, I’ve finally heard from Sumit Gupta, the co-founder of CoinDCX. He’s spoken out for the first time about his arrest and the arrest of his fellow co-founder, Neeraj Khandelwal. It’s been a few days since it happened, but this is the first public statement from him about the whole situation.

In a lengthy post on X (formerly Twitter), Gupta admitted the incident was “deeply unsettling” and explained the exchange’s plans to address the issue with a series of improvements.

The main part of CoinDCX’s announcement is the launch of the Digital Suraksha Network (D.S.N.), a 100 crore rupee fund created to improve cybersecurity for India’s growing digital finance industry, something the company believes is currently lacking.

What happened with the arrest

Here’s what happened: On March 21, 2026, Thane Police arrested Gupta and Khandelwal following a fraud complaint. A 42-year-old insurance advisor from Mumbra reported being cheated out of 71.6 lakh rupees through a scheme advertised on the website coindcx.pro, which falsely promised franchise opportunities and high returns related to CoinDCX.

On March 24th, a court in Thane released both founders on bail. The magistrate, Nilesh Rathod, determined there wasn’t enough initial evidence to suggest they had committed a crime. The police officer leading the investigation didn’t object to their release. Adding to this, the person who originally filed the complaint stated in a sworn statement that he didn’t know the founders, had never met them, and had already recovered the money in question from someone else. He confirmed he had no issues with Gupta or Khandelwal.

CoinDCX has consistently stated that the fraud involved a fake website – coindcx.pro – created by impersonators with no affiliation to CoinDCX, its systems, or its parent company, Neblio Technologies. The exchange confirmed that no funds were transferred through CoinDCX itself, and no transactions related to the reported fraud occurred on their platform.

What Gupta said in his statement

Gupta explained that a recent experience highlighted a critical issue for the company’s founders. They realized the current industry lacks the ability to differentiate between builders who are acting ethically and those who are taking advantage of the system.

He questioned what this case could mean for the future, arguing that it seems to suggest a founder could be held legally responsible if someone is scammed using their image and name on a fake website – instead of the scammer themselves being held accountable. He emphasized this isn’t just a problem for cryptocurrency companies, but for any business that has an online presence.

As a crypto investor, I was pretty concerned to learn that CoinDCX identified over 1,200 fake websites trying to look like their official site, coindcx.com, between April 2024 and January 2026. Apparently, they’ve been tracking this data internally for a while, but are just now sharing it. It’s good they’re being transparent, but it definitely highlights the risks out there when dealing with crypto exchanges.

What Digital Suraksha Network will include

CoinDCX announced that its 100 crore rupee fund will be used to focus on four key areas of development.

CoinDCX is launching a 24/7 WhatsApp helpline, available to anyone – not just their customers. This free service will help people check if links, websites, and deals are legitimate before making any transactions.

CoinDCX is also launching a Fraud Intelligence API. They’ve already identified over 1,200 fake websites pretending to be their platform and want to share this information instantly with others. They’re inviting all Indian exchanges, fintech companies, banks, and lenders to contribute data, creating a collaborative defense system against fraud for the entire digital finance industry.

As part of my research, I’m focusing on the infrastructure needed to help law enforcement combat cybercrime. One key area is training, and the D.S.N. will be providing programs specifically for state cybercrime cells. These programs will cover important skills like blockchain forensics and how to trace digital assets. I’ve already learned that CoinDCX has been proactively working with various law enforcement and government organizations on similar initiatives, which is encouraging.

The company also launched “Caution Before Transaction,” a national campaign to help all Indians use digital financial services securely.

CoinDCX’s existing work with law enforcement

CoinDCX highlighted its ongoing work with police and government organizations as part of the announcement.

The company is collaborating with the Enforcement Directorate (ED) to securely store digital assets seized during investigations. They’re using advanced technologies like multi-signature wallets and MPC to ensure these assets are protected. Additionally, they’ve been working with the Delhi Police to improve their skills and knowledge in investigating cryptocurrency-related crimes.

CoinDCX has been working with Indian law enforcement to combat cybercrime. This includes providing training on investigating virtual assets at the Sardar Vallabhbhai Patel National Police Academy and collaborating with the Indian Cyber Crime Coordination Centre (I4C). The company also offers technical support and shares information with the Income Tax Department.

CoinDCX partnered with the Goa Police to launch the Cyber Surakshit Goem campaign, which aims to educate the public about cyber fraud. They’ve also been working with Gujarat National Law University to research rules and regulations for crypto assets.

The broader cybercrime numbers

CoinDCX recently highlighted the growing problem of cybercrime in India, citing government data. According to the Ministry of Home Affairs, reported by ThePrint, there were over 2.8 million cybercrime complaints filed by Indians in 2025 – a 24% increase from the year before. These crimes resulted in total financial losses of over Rs 22,495 crore, with investment scams making up a large majority – 76% – of that total.

Out of the nearly 2.8 million complaints received, less than 2% – just 55,484 – resulted in a formal police investigation (FIR), according to data from the Ministry of Home Affairs.

CoinDCX highlighted a 2025 report by ORF/McAfee which revealed that almost half of Indian adults (47%) have either been targeted by, or know someone who has experienced, a scam involving AI voice cloning or deepfakes. This rate is almost twice as high as the global average, and the report found that 83% of those affected lost money.

A call to the industry

Gupta stated that tackling fraud requires a collaborative effort, as no one company can solve it alone. He explained that these fraud schemes are complex, operate across international borders, and constantly change. He also noted that artificial intelligence is making these networks much more difficult to detect and stop.

He explained that CoinDCX is investing 100 crore rupees because the digital finance industry needs immediate support. He urged all platforms, regulators, and individuals involved in India’s digital finance sector to collaborate on this initiative.

He also explained how this effort supports the wider startup community in India. He stated that CoinDCX aims to create an environment where entrepreneurs can build their businesses with assurance, rather than worry.

What this means going forward

This news from D.S.N. follows a difficult year for CoinDCX, which has dealt with a $44.2 million security breach, several departures of key leaders, investigations by the Enforcement Directorate and tax authorities, and now the arrest and release on bail of its founders.

While the charges against the company’s founders were dismissed in court, four other individuals originally named in the police report – Akash Rana, Rahul Gupta, P. Vasudev, and Shivam Sharma – are still at large. The police are continuing their investigation.

As a researcher in this space, I’ve been following the recent news about the significant investment aimed at improving digital financial infrastructure. While the commitment of 100 crore rupees is promising, its real impact will depend on how well it’s implemented. What’s become clear through cases like CoinDCX is that a much larger problem exists. We’re seeing a systemic rise in brand impersonation, fake websites, and social engineering scams – not just within the crypto world, but across the entire digital finance landscape in India. The recent arrests of founders of a $2.45 billion company, even for a scam they claim no involvement in, really highlights how quickly digital fraud is evolving and how far behind our current tools and defenses are.

Now, it’s up to CoinDCX to prove their new system works as expected. They’ve stated they will be releasing more information in the next few weeks.

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2026-03-30 12:54