ED Searches CoinDCX, Delta Exchange Over Crypto Transfers

India’s Enforcement Directorate is investigating CoinDCX and Delta Exchange over alleged unauthorized cross-border crypto transactions, overseas derivatives trading and tokenized stock products offered to Indian users.

The agency searched premises linked to the exchanges in Bengaluru on Nov. 4, 2026. The searches were conducted by the ED’s Bengaluru Zonal Office under Section 37 of the Foreign Exchange Management Act, 1999.

The premises included Neblio Technologies Pvt. Ltd., which operates CoinDCX, and Excelium Technologies Pvt. Ltd., which is linked to Delta Exchange India. Investigators are examining whether funds deposited by Indian customers were sent to foreign platforms for crypto trading and settlement without required approvals.

The probe is focused on the movement of customer funds from India to overseas entities. Investigators are examining whether Indian rupees were converted into Tether’s USDT stablecoin and routed through a Costa Rica-based company to foreign crypto exchanges, including Binance, KuCoin and Gate.io.

The ED is also checking whether derivatives positions placed by Indian users were executed or mirrored on overseas exchanges. The investigation covers tokenized products linked to foreign stocks and the role of offshore entities in the exchanges’ trading and settlement operations.

The transactions under review reportedly involve payments and transfers worth thousands of crores. The figures cover separate categories, including payments to foreign crypto platforms and transfers to overseas associate companies. They do not represent a confirmed loss or a finalized total of alleged illegal transfers because the investigation is ongoing.

The ED is examining possible violations of the FEMA, the Securities and Exchange Board of India Act, the Securities Contracts (Regulation) Act and the Reserve Bank of India Act. These laws cover foreign exchange transactions, securities activity and financial operations.

Investigators are expected to determine where customer trades were executed, how rupee-to-USDT conversions and overseas transfers were conducted, and whether the companies had the required regulatory permissions. Further action will depend on the findings of the investigation.

Reviewed and fact-checked by Alex Panasenko on November 9.