CoinDCX launches ₹100 crore cybersecurity network after impersonation-linked controversy

Crypto exchange CoinDCX on March 30 announced the launch of a ₹100 crore Digital Suraksha Network (DSN), an initiative aimed at tackling cyber fraud and strengthening trust in India’s digital finance ecosystem.

The initiative will support independent research on digital fraud, fund the development of new standards, and build tools such as an open Fraud Intelligence API. It also plans to publish quarterly “State of Digital Trust” reports and support training programmes for state cybercrime cells. A 24×7 WhatsApp helpline is also being proposed to help users verify transactions and avoid scams.

As part of the initiative, CoinDCX said it will roll out a nationwide “Caution Before Transaction” campaign to promote safer digital behaviour. This will include multilingual educational content, a public verification platform powered by its fraud intelligence systems, partnerships with consumer protection bodies, and integration with financial literacy programmes.

The announcement comes days after CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal were arrested in connection with a fraud case linked to alleged impersonation. The two were granted bail by a Thane court on March 24, which observed that prima facie no case was made out against them.

According to the company, the complaint stemmed from a scam carried out through a fake website, coindcx.pro, which it said was operated by impersonators with no connection to the exchange. CoinDCX has maintained that no transactions related to the fraud took place on its platform.

The case was registered following a complaint by an insurance advisor who alleged losses of ₹71.6 lakh after interacting with entities believed to be associated with CoinDCX, as per PTI. The FIR was filed at the Mumbra police station in Thane on March 16, and the co-founders were arrested on March 21.

CoinDCX has described the FIR as “false” and alleged that it was part of a conspiracy involving impersonators posing as its founders. The company said it has reported over 1,200 fake websites impersonating its platform between April 2024 and January 2026.

Commenting on the episode, the founders said the experience was “quite shocking” and “very disheartening,” and emphasised the need for stronger safeguards against digital fraud.

“We want to ensure that anyone building in India like us can do so with confidence, and not with fear,” they said.