Court Dismisses Cheating Allegations Against CoinDCX Founders
CoinDCX co-founders Naman Bansal and Ankit Dutta were granted bail on March 24, 2026, after a Thane court dismissed cheating allegations connected to a fraudulent trading platform impersonating their company. The court found no substantial evidence to uphold the charges.
The controversy stemmed from a complaint filed on March 16, 2026, by a 42-year-old insurance consultant who claimed to have lost over ₹71 lakh (approximately $85,000) due to false promises of high monthly returns through an investment scheme falsely linked to CoinDCX. The accused website, coindcx.pro, was set up by fraudsters impersonating the legitimate cryptocurrency exchange at coindcx.com, operating from August 2025 to February 2026.
Fraud Case Background
CoinDCX vehemently denied any involvement in the allegations, characterizing the FIR as a misrepresentation orchestrated by impersonators. The company revealed that between April 2024 and January 2026, it faced over 1,212 fake websites impersonating its brand and has actively warned users regarding such scams.
According to the court ruling, third-party impersonation was taking place, with evidence showing that neither co-founder was present at the claimed location of the offense. The plaintiff had successfully recovered funds from another accused individual and later submitted an affidavit withdrawing grievances against Bansal and Dutta. Additionally, the investigating officer had lodged no objections to their bail request.
Court Proceedings and Aftermath
Both co-founders underwent questioning from March 21 to March 23, with the bail hearing conducted on March 23, concluding shortly thereafter. As the police custody came to an end, investigations continued against other suspects involved in the fraudulent scheme.
Despite the tumultuous events, CoinDCX’s operations remain unaffected, with user assets secured and bolstered by appropriate reserves and rigorous audits. This case underscores the ongoing challenges associated with cryptocurrency regulation, as the speed of technological advancement often outpaces legal frameworks.
Looking forward, industry analysts emphasize the importance of robust regulation and improved security measures to protect consumers from scams. The need for an effective regulatory framework has become more pressing as cases of impersonation and fraud proliferate, especially in rapidly growing sectors such as cryptocurrency.
