CoinDCX Founders Seek Bail as Complainant Withdraws Grievance in Thane Fraud Case
In a significant development, the co-founders of cryptocurrency exchange CoinDCX, Sumit Gupta and Neeraj Khandelwal, have moved a bail application before a Thane court. This comes just two days after their arrest by Mumbra police from Bengaluru and follows a dramatic turn of events where the complainant filed an affidavit stating he has recovered his money and no longer has any grievance.
The Case Background and Arrest Details
The case centers around allegations that the complainant, a 41-year-old insurance adviser, was duped of Rs 71.6 lakh over seven months through promises of high returns and a purported cryptocurrency franchise linked to CoinDCX. According to police reports, the victim first came in contact with one of the accused in mid-2025 and was offered a franchise for Maharashtra with assurances of 10-12% monthly returns.
The complainant allegedly made multiple payments through both online transactions and cash based on these claims, but neither the promised returns nor the franchise materialized. Following this, he approached Mumbra police earlier this month, leading to the registration of an FIR that invokes charges of cheating, criminal breach of trust, and fraud against six persons.
Court Proceedings and Judicial Custody
After their police remand ended on Monday, Gupta and Khandelwal were sent to judicial custody. The same day, the complainant filed his affidavit before the Thane court, stating he has recovered his money from one of the six accused named in the FIR. This development raised immediate questions about the police investigation and created a new legal landscape for the case.
Following the filing of this affidavit, the CoinDCX founders promptly moved their bail application. The magistrate heard arguments from both sides during the proceedings and has reserved the order for Tuesday, leaving the fate of the bail plea pending until then.
Police Investigation and Company Response
Of the six persons named in the FIR, four remain absconding according to police statements. The case has drawn attention to what CoinDCX describes as a larger impersonation scam involving misuse of their brand name. The company had earlier called the FIR "baseless" and maintained that its founders have been targeted as part of this broader scheme.
CoinDCX declined to comment specifically on the complainant's affidavit, stating they will respond after reviewing the court order. The company emphasized it is fully cooperating with the police investigation while maintaining its position that the allegations stem from fraudulent activities by third parties misrepresenting themselves as associated with CoinDCX.
Broader Implications for Cryptocurrency Industry
This case highlights several critical issues facing India's growing cryptocurrency sector:
- The vulnerability of investors to fraudulent schemes promising unrealistic returns
- The challenges of brand protection in the digital asset space
- The legal complexities when complaints are withdrawn or modified during investigations
- The regulatory environment surrounding cryptocurrency operations in India
As the Thane court prepares to deliver its order on the bail application Tuesday, all eyes remain on how this case will unfold and what precedent it might set for similar financial disputes in India's evolving digital economy landscape.
