Fake companies using name to defraud people, says crypto firm as police probe underway

CoinDCX, however, said the instant case was that of “fraudulent websites/URLs” masquerading as CoinDCX exchange.

A 24-year-old engineer from Chattarpur said he started using the app last month and invested close to Rs 14 lakh but when he tried to withdraw the money, he was asked to transfer Rs 4.65 lakh, from which tax would be deducted. Other complainants too alleged they were “forced” to pay more to get a refund.

The company said the incident was not related to the CoinDCX app or website and was a case of a fake website scam. “It’s important to note several fake websites/URLs are in operation, mimicking financial apps to deceive users, a challenge faced by many fintech players and financial apps including crypto apps. Swiftly, we have reported these threats to CERT… Our compliance team held a meeting with officials from I4C and MeiTY, provided them with the list of deceptive websites and are seeking their assistance in removal,” said a company spokesperson. The company further said more than 100 fake profiles have been created using its name to dupe users and investors.

A senior police officer said, “We haven’t received an official complaint from the firm yet. We received complaints against fake crypto platforms and Telegram channels. We registered FIRs and will investigate the matter. There are multiple crypto platforms and portals cheating people in the name of Bitcoin investment. Since there are no regulations on cryptocurrency, people take advantage and cheat investors.”