Founders of the Coinbase-backed Indian crypto exchange CoinDCX have been questioned by authorities amid a fraud investigation, according to recent reports. The development has stirred industry concerns, yet the company maintains this scrutiny is misguided rather than indicative of internal wrongdoing.

CoinDCX clarified that the complaint arises from a vast web of impersonation scams plaguing the crypto space. The exchange revealed that criminals have cloned its brand across more than 1,200 fake websites to dupe investors, asserting that the founders are victims of this external brand abuse rather than perpetrators of fraud.