Indian crypto exchange CoinDCX plans a major anti-fraud initiative after its founders were exonerated in an impersonation scam.
CoinDCX, a cryptocurrency exchange backed by Coinbase, announced plans for a 100 crore Indian rupees ($11 million) Digital Suraksha Network to address impersonation and cyber fraud. This initiative follows an Indian court's decision that found no case against the company's founders.
Earlier in March, CoinDCX co-founders Sumit Gupta and Neeraj Khandelwal were detained by Thane police over a complaint involving a fake "CoinDCX Pro" website that defrauded an investor of about $75,000. The court granted them bail, determining that the fraud was committed by third parties and that the complainant had never interacted with the actual founders.
Details of the Anti-Fraud Network
The Digital Suraksha Network includes a 24/7 WhatsApp helpline for users to verify links and platforms before transactions. It also features an open fraud intelligence API drawing from CoinDCX's database of over 1,200 identified impersonating websites.
Additionally, the network will provide training for state cybercrime cells on blockchain forensics and asset tracing. CoinDCX aims to launch a "Caution Before Transaction" campaign to educate ordinary digital finance users about potential risks.
Gupta described the issue as a sector-wide problem, not limited to crypto, stating that any business with a digital presence could face similar impersonation threats. He emphasized that the network is designed to enhance cyber safety across industries.
CoinDCX, valued at $2.45 billion after recent investments, has positioned this effort as a response to growing phishing and impersonation challenges in India's crypto sector. The company did not specify a detailed rollout timeline for the network in their announcement.
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