- ED searches CoinDCX and Delta Exchange over alleged cross-border crypto transactions.
- Probe examines USDT transfers, overseas derivatives trading and tokenised stock products.
- Investigation covers transactions worth thousands of crores, with further ED action possible.
The crypto industry in India is facing another challenge as the Enforcement Directorate (ED) investigates CoinDCX and Delta Exchange over their alleged overseas crypto dealings. The investigation focuses on suspected cross-border transactions, derivatives trading, and tokenized stock products offered to Indian users. On November 4, 2026, the ED conducted searches at premises linked to both exchanges in Bengaluru.
ED Conducts Searches at CoinDCX and Delta Exchange Offices in Bengaluru
Recent reports reveal the Enforcement Directorate’s (ED) enforcement actions against CoinDCX and Delta Exchange India in Bengaluru. The searches were carried out by the ED’s Bengaluru Zonal Office under Section 37 of the Foreign Exchange Management Act (FEMA), 1999.
Notably, the premises included Neblio Technologies Pvt. Ltd. and Excelium Technologies Pvt. Ltd. While Neblio Technologies operates CoinDCX, Excelium Technologies is linked to Delta Exchange India. The ED focused on the platforms’ alleged unauthorized cross-border crypto transactions and the movement of funds through overseas entities.
The ED is currently checking whether funds deposited by Indian customers were routed to foreign platforms for crypto trading and settlement. It is also looking into the exchanges’ overseas derivatives activities and tokenized stock products.
What triggered the investigation?
Significantly, the investigation centres around the concerns surrounding CoinDCX and Delta Exchange India’s alleged overseas crypto transactions. The exchanges allegedly used customer funds for overseas transactions without the required regulatory approvals. The ED is now examining how both exchanges handled cross-border fund movements. The team wants to know if their overseas entities played a role in trade execution and settlement.
The ED analyses the movement of funds from Indian customers to overseas platforms. Reportedly, these exchanges converted customer funds in Indian rupees (INR) to Tether (USDT). These funds were routed through a Costa Rica-based entity and reached overseas crypto exchanges, including Binance, KuCoin, and Gate.io.
They are also checking whether derivatives positions taken by Indian users were executed or mirrored on foreign exchanges. The probe also covers tokenized products linked to foreign stocks. The ED is looking into how these transactions were handled and whether the movement of funds complied with India’s foreign exchange regulations. The investigation could also help establish the role of overseas entities in CoinDCX‘s trading and settlement operations.
Transactions involve thousands of crores
According to reports, the investigation involves large transfers worth thousands of crores. The agency has referred to hundreds of crores in payments to foreign crypto platforms and transfers to overseas associate entities. These transactions are part of the ongoing investigation into the exchanges’ cross-border products.
However, it is worth noting that the figures represent different categories of transactions. They should not be considered together or treated as a confirmed loss or total amount of illegal transfers. The investigation is still ongoing. Thus, finalized findings are not yet revealed.
Which Indian Laws Are Under the ED’s Scanner?
The investigation raises questions about whether the exchanges’ overseas activities complied with India’s financial and securities regulations. The ED is examining potential violations under the Foreign Exchange Management Act (FEMA), 1999.
The probe also involves regulatory concerns under the SEBI Act, 1992, the Securities Contracts (Regulation) Act, 1956, and the RBI Act, 1934. These laws cover different aspects of foreign exchange transactions, securities trading, and financial activities.
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Interestingly, the next part of the ongoing probe is expected to focus on how the exchanges handled customer funds and overseas trading activities. The ED is expected to examine where the customer trades were actually executed. The investigation will also check how the INR and USDT transfers were carried out.
The ED will also explore the role played by any offshore organizations and whether the exchanges had the necessary regulatory permissions for the transaction. The result will determine whether any other steps have to be taken against the companies and/or any other associated organization.
Related: CoinDCX Confirms $16M Loss After Failed Wallet Sweeping System Exposed Deposits
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