Court Clears CoinDCX Founders in ₹71L Fraud, Links Scam to Fake Website

The founders of cryptocurrency exchange CoinDCX have been released on bail after a ₹7.1 lakh scam was linked to a fraudulent website impersonating their platform. Investigations showed no connection between the scam and CoinDCX itself, the stolen funds have been recovered, and the platform remains secure.

They were initially arrested following a report of a ₹71 lakh fraud. However, the court has clarified that the fraud involved a fake website, not the official one.

Court Finds No Prima Facie Case Against Founders

The court granted bail to Sumit Gupta and Neeraj Khandelwal after reviewing the case details.

The investigation found no initial proof connecting them to the fraudulent activity. Additionally, the activity didn’t take place directly on the official CoinDCX platform.

The founders of CoinDCX, Sumit Gupta and Neeraj Khandelwal, have been released on bail. The court determined the alleged fraud occurred on a fake website and not the official CoinDCX platform.

— 3.0 TV (3verseTV) (@reallive3tv)

The person who filed the complaint told the court that the money had been found and they no longer had any issues with the case.

This statement played a role in the court’s decision to grant bail.

The court’s decision confirmed the fraud was committed through identity theft, not a problem with the platform itself. It also noted that the people accused weren’t directly involved in carrying out the fraudulent transactions.

Read also: Indian Investors on CoinDCX Shift to Wider Crypto Portfolios

Fraud Traced To Phishing Website Impersonating CoinDCX

The scam involved a fake website used to trick people. This fraudulent site, located at “coindcx.pro,” closely copied the look and feel of the legitimate website, which is “coindcx.com.”

Big Update: CoinDCX Case

Court says CoinDCX founders were impersonated.

Scam was third-party phishing.Exchange says funds safe, operations normal.

Fake site: coindcx .proOfficial: coindcx .com

Always verify & check website links.

— Crypto India (@CryptooIndia)

Attackers tricked people into submitting their personal information on a fake website, giving them access to their money. Authorities have identified this as a phishing scam, not a security failure of our systems.

CoinDCX has confirmed that its platform was not breached during the recent incident. They stated that their internal systems remained secure and user funds held on the platform were safe.

The company explained that someone created a fake website to pretend to be them. They confirmed their own systems were not affected and are still working normally. They also stated they are constantly watching out for similar threats.

Exchange Operations Remain Normal Amid Case Developments

CoinDCX confirmed that its services weren’t affected by the investigation, and users were still able to trade and withdraw funds normally.

The company maintained that its security systems functioned as intended.

According to Live Bitcoin News, a 42-year-old man from Mumbra reported losing 71.6 lakh rupees on March 16th after investing in a scheme that guaranteed fixed returns.

I recently dealt with a scam and CoinDCX clarified they weren’t involved. Apparently, the fraudsters weren’t even using the real CoinDCX website – they were operating through a fake site with a slightly different address, ‘coindcx.pro’. I never actually contacted them through their platform, which makes sense considering that.

The company denied the police complaint (FIR) was legitimate, claiming it was filed by imposters and that the money actually went to different accounts. They also stated they had previously reported over 1,200 fake websites.

This event highlights the dangers of phishing, where fraudulent websites convincingly imitate legitimate ones to trick people.

Officials are reminding people to double-check website addresses and get information from official sources. The recent court ruling came after new evidence surfaced, highlighting the role of outside parties, and CoinDCX is encouraging users to report any links that seem fishy.