The development follows the questioning of the CoinDCX co-founders in the case. The duo were also arrested by Thane Police in connection with the matter.

After reviewing the submissions, the court held that the applicants were entitled to bail and allowed the plea.

According to the case details, the accused contended that they were falsely implicated and had no direct or indirect connection with the alleged offence. They stated that they are directors or promoters of a globally operating company and that the fraudulent activities were carried out in the name of their company by unknown individuals.

Confirming the development to Entrackr, a company spokesperson said that CoinDCX strongly condemns such malicious activities and that holding legitimate institutions accountable for actions carried out by bad actors misusing their identity risks setting a damaging precedent for the broader financial ecosystem. The spokesperson added that accountability must remain with those orchestrating and executing the fraud.

The investigation officer did not oppose the bail plea and informed the court that the accused were not present in Mumbra at the time of the alleged offence. The officer added that another individual had allegedly cheated the informant through impersonation.

The court also said that the applicants have no criminal history and that there is no likelihood of absconding or tampering with evidence.

The case highlights how such complaints can become a significant burden for startups and divert time and resources from core operations. As digital businesses scale, instances of impersonation and misuse are likely to increase and make it essential to establish clear SOPs to handle such cases. A structured approach can help protect legitimate firms and ensure accountability remains with actual offenders.