Indian crypto exchange CoinDCX has unveiled a major anti-fraud initiative after a local court ruled that there was no case against its founders in a recent impersonation scam.

The Coinbase-backed platform said it will invest ₹100 crore (approximately $11 million) into a new “Digital Suraksha Network” aimed at tackling rising cases of phishing, brand impersonation, and cyber fraud across the crypto sector.

The move follows legal scrutiny earlier this month involving CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal, who were briefly detained in connection with a complaint linked to a fake trading website posing as the company.

COURT DISMISSES CASE LINKED TO FAKE COINDCX PLATFORM

Authorities in Thane detained the founders on March 21 after an investor alleged losses of roughly $75,000 through a fraudulent website branded as “CoinDCX Pro.”

However, a magistrate court later granted bail and stated there was “no prima facie” evidence against the founders. The court also noted that the complainant had no direct interaction with the actual CoinDCX team.

According to the company, the scam was carried out by third parties using spoofed platforms and impersonating the founders — a position CoinDCX maintained throughout the investigation.

The case highlights a growing trend in India where scammers exploit the credibility of established crypto platforms to target retail investors.

CoinDCX founder announces Digital Suraksha Network. Source: Sumit Gupta

RISING IMPERSONATION THREATS PUSH INDUSTRY RESPONSE

CoinDCX revealed that it has already identified more than 1,200 fraudulent websites imitating its brand, underlining the scale of the issue.

Gupta emphasized that impersonation scams are not limited to crypto but affect any business with a digital presence. However, the rapid growth of digital assets and online trading platforms has made the sector a frequent target for cybercriminals.

As crypto adoption continues to expand in India, concerns around user safety, phishing attacks, and fraudulent investment schemes have become increasingly prominent.

DIGITAL SURAKSHA NETWORK TO FOCUS ON USER PROTECTION

The newly announced Digital Suraksha Network aims to create a broader safety framework for users and institutions dealing with digital finance.

Key features of the initiative include:

  • A 24/7 WhatsApp helpline to help users verify links and platforms before making transactions
  • An open fraud intelligence API powered by CoinDCX’s database of scam websites
  • Training programs for state cybercrime units on blockchain forensics and fund tracing
  • A public awareness campaign titled “Caution Before Transaction” targeting everyday users

While the company outlined the initiative’s scope, it did not provide a detailed rollout timeline or specify how the allocated funds will be deployed.

COINDCX’S MARKET POSITION AND BACKING

CoinDCX remains one of India’s largest cryptocurrency exchanges and counts Coinbase among its investors. The platform was valued at $2.45 billion following an investment increase in October 2025.

The latest move reflects a broader shift among crypto firms toward strengthening user protection and compliance as regulatory scrutiny and cyber risks continue to rise globally.

CoinDCX did not respond to media queries at the time of publication.