CoinDCX Rebukes Fraud Allegations, Points to Impersonation Scam in Police Probe
CoinDCX, a major Indian crypto exchange, has denied fraud allegations linked to an ongoing police investigation, stating that impersonators misused its brand and posed as its founders to defraud investors. The case involves a scam in which victims were promised high returns via schemes using fake CoinDCX branding. CoinDCX emphasizes that its founders were wrongfully named in the police complaint (FIR) and that the complainant has no connection to the actual platform. The exchange highlighted that funds were funneled to unrelated third-party accounts, not through its systems, and reported identifying over 1,200 fake sites impersonating CoinDCX in recent months. Industry experts note this is a growing pattern of impersonation fraud in India’s crypto sector, exacerbated by weak regulatory frameworks and lack of clear investor protections. CoinDCX is cooperating with authorities and increasing public warnings to protect users. The exchange previously faced a security breach in July 2023, when hackers stole $44.2 million via compromised credentials linked to a now-arrested employee.
