India's Enforcement Directorate searched premises linked to CoinDCX and Delta Exchange India on Nov. 4 and Nov. 5, targeting Neblio Technologies (CoinDCX's parent) and Excelium Technologies (Delta's operator). The Bengaluru office is investigating under the Foreign Exchange Management Act, alleging what it describes as "large-scale unauthorised cross-border financial transactions involving crypto token derivatives and real-world asset tokens."
The alleged flow: CoinDCX users deposited rupees, converted them to stablecoins—primarily USDT—then moved those tokens to Binance, Kucoin, Gate.io, and Bybit. The ED claims this circumvented India's forex regulations. For spot trades, investigators say CoinDCX routed flow through a Costa Rica-registered company account that functioned as a pass-through, with trades executed directly via CoinDCX's APIs.
On derivatives and tokenized stocks, the ED alleges CoinDCX opened matching positions on foreign platforms and settled them overseas when users placed orders domestically. CoinDCX's tokenized-stock trading allegedly ran through Hyperliquid, a decentralized exchange.
The ED claims both firms paid hundreds of crores in fees to foreign platforms using stablecoins. Delta Exchange India allegedly sent hundreds of crores in rupees to overseas entities, with much of Delta's derivatives and tokenized-stock flow passing through CoinDCX before reaching foreign venues. The agency stated both firms' products appeared to breach rules set by India's Securities and Exchange Board and Reserve Bank.
Delta Exchange India said on X it is cooperating "fully" with officials and operating "business as usual with no disruptions, in accordance with applicable law." Trading, deposits and withdrawals function normally, and user funds remain secure in Indian banks, the exchange said. It committed to provide further support as required.
CoinDCX has not issued a public statement. All allegations remain unproven.
