Mumbai, March 26 (Udaipur Kiran): A court in Thane, Maharashtra, has dismissed the fraud case against CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal, stating that no prima facie evidence was found against them in connection with an alleged fraud of Rs 71 lakh.

The court also granted bail to both co-founders, noting that the complaint did not establish their involvement in the case at the initial stage.

According to the proceedings, both the complainant and investigators confirmed that the fraud was carried out by other individuals impersonating the founders. The case had originated from allegations that an investor was duped through a fake scheme falsely linked to the crypto exchange CoinDCX.

During the hearing, it emerged that the complainant had recovered his money from one of the accused who had posed as a co-founder of the company. The court also observed that the co-founders were not present at the location where the alleged offence took place, further weakening the case against them.

In a post on X, CoinDCX stated that the proceedings validated its claim that the fraud was linked to third-party impersonators and not the company or its founders. The exchange clarified that the scam was executed through a fake platform and advised users to remain cautious and engage only with official platforms.

The complainant, an insurance advisor, had alleged that he was lured with promises of high returns on investment in a firm claimed to be associated with the crypto exchange. The alleged transactions took place between August last year and March this year.

Police in Thane had earlier stated that the complainant, a resident of Mumbra, was also offered a franchise. He reportedly transferred around Rs 71.6 lakh through cash and online transactions in multiple instalments, alleging that the amount was neither returned nor properly utilised.

Officials noted that cases related to crypto-linked frauds have increased in recent years.

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