- CoinDCX was impersonated by scammers using a fake website, no transactions occurred on CoinDCX
- Co-founders Sumit Gupta and Neeraj Khandelwal were arrested on March 21 and granted bail on March 24
- No prima facie case was found against the CoinDCX founders in the fraud complaint
Sumit Gupta, cofounder of CoinDCX, said in an X post on Monday that cryptocurrency platform was impersonated by scammers who used a website named http://coindcx.pro.
"No money moved through CoinDCX. No transaction occurred on our exchange. The complainant himself confirmed in court that he did not know us and had never met us," he said.
Gupta said that he and the other cofounder Neeraj Khandelwal we were taken into police custody on March 21 in connection with a fraud complaint. He stated that the duo recieved bail from a a Thane court on March 24. No case was made out against them on a prima facie basis.
Gupta described his experience with the arrest as "painfully unsettling", stressing that it set a precedent for scammers to steal the identity of other business owners and founders.
"The ecosystem we operate in doesn't yet have the tools to tell the difference between the people building this industry responsibly and the people exploiting it," Gupta wrote.
ALSO READ: CoinDCX Co-Founders Arrested In Rs 72-Lakh Crypto Fraud Case; Company Calls FIR 'False'
"Think about what this precedent means: if a scammer uses your brand, your name, your face in a fake website and defrauds someone, you can be arrested. Not the scammer. You. This Could Happen to Any founder, Any Business," he added.
Gupta announced a Digital Suraksha Network, which he described as a "digital finance ecosystem" that India "needs but does not yet have."
The CoinDCX cofounder stated the firm would outlay a commitment of Rs 100 crore for the project.
This ecosystem includes a 24x7 WhatsApp helpline that's free for everyone to verify links, platforms, and offers before you transact.
'The Digital Suraksha Network will fund training programmes for state cybercrime cells on blockchain forensics and digital asset tracing," Gupta said.
CoinDCX further unveiled 'Caution Before Transaction', a nationwide initiative to "give every Indian the tools to participate in digital finance safely."
ALSO READ: CoinDCX Cofounders Get Bail After Arrest In Alleged Rs 71.60 Lakh Cheating Case
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