India’s ED Searches CoinDCX and Delta Exchange
India’s Enforcement Directorate has searched premises connected to CoinDCX and Delta Exchange India as part of an investigation into alleged foreign exchange law violations involving offshore cryptocurrency platforms. The allegations remain unproven, and the inquiry is ongoing.
According to Bitcoin.com News, the agency alleges that the two India-linked platforms routed customer trading activity through overseas exchanges including Binance, Bybit and other venues.
What happened
As of November 4 and 5, the Enforcement Directorate’s Bengaluru Zonal Office searched three premises linked to Neblio Technologies Pvt., identified as CoinDCX’s parent, and Excelium Technologies Pvt., which operates Delta Exchange India, Outlook Money reported. The searches were conducted under Section 37 of the Foreign Exchange Management Act, 1999, or FEMA.
Bitcoin.com News reported that the agency’s inquiry concerns allegations that user trades were routed to Binance, Bybit and other offshore platforms. ThePrint separately reported that ED alleged CoinDCX maintained trading accounts at overseas cryptocurrency exchanges and held crypto assets in a manner that violated FEMA provisions.
Outlook Money reported that ED alleged CoinDCX opened corresponding 1:1 futures and options positions on Binance, KuCoin, Bybit and Gate.io. Under the agency’s account, those positions were closed and settled on the foreign platforms when users closed their trades.
For spot-market activity, CNBC TV18 reported that ED alleged Indian rupee deposits on CoinDCX were converted into USDT and sent to Binance, KuCoin and Gate.io for execution. CNBC TV18 said the agency alleged that this activity was routed through an account held by a Costa Rica-based paper entity and executed through CoinDCX application programming interfaces.
Outlook Money reported that ED put the alleged cross-border spot volume at thousands of crores of rupees. It also reported that the agency alleged CoinDCX paid hundreds of crores in fees to overseas platforms in USDT. The same report said ED alleged Delta Exchange India had volume of several thousand crores of rupees and that hundreds of crores had been transferred to overseas associates.
Why it matters
The searches place the operational structure of India-focused crypto platforms under closer scrutiny, particularly where local customer activity may be connected to offshore execution, settlement or custody arrangements. FEMA governs cross-border money flows in India, making the alleged movement of value and trading activity across jurisdictions central to the case.
The allegations also distinguish between a platform’s domestic-facing operations and the infrastructure that may support trading behind the scenes. ED’s claims, as reported by Outlook Money and CNBC TV18, focus on whether Indian rupee deposits, USDT transfers and matching positions on offshore exchanges were connected in ways that breached applicable rules.
None of the reported allegations has been established in court. Bitcoin.com News said CoinDCX had not commented by the time of its report. Later coverage from CNBC TV18 and Outlook Money carried cooperation statements from CoinDCX, while Outlook Money also published Delta Exchange’s response.
According to Outlook Money, Delta Exchange said Excelium Technologies has been registered with FIU-IND since 2023. The company said it operates an INR-settled exchange, does not facilitate cross-border virtual digital asset transfers, and keeps user funds in Indian banks.
Background and context
FEMA is India’s law governing cross-border money flows. ED has said the case involves alleged large-scale unauthorised transactions in crypto derivatives and real-world asset tokens.
The agency also alleged that tokenised stocks tied to companies such as Apple, Google and Tesla were derivatives executed on Hyperliquid. The compliance questions around those products are being examined under the Securities Contracts Act, the SEBI Act and the RBI Act.
The reported inquiry therefore spans more than conventional spot crypto activity. It concerns derivatives, tokenised representations of real-world assets, cross-border transfers and the use of overseas trading venues. The outcome may depend on how investigators assess the relationship between the Indian entities, foreign platforms, customer orders and settlement arrangements.
Bitcoin.com News identified Neblio Technologies as CoinDCX’s parent and Excelium Technologies as the operator of Delta Exchange India. ThePrint’s report added the allegation that CoinDCX’s overseas trading accounts and crypto holdings were inconsistent with FEMA requirements.
What to watch
A central open question is whether ED will release further detail on the alleged trading flows, overseas accounts and Costa Rica-based entity described by CNBC TV18. It is also unclear whether the agency will identify particular transactions, periods or counterparties underlying the volume and fee allegations reported by Outlook Money.
Further statements from CoinDCX and Delta Exchange India may clarify how each company characterises its trading, settlement and custody arrangements. Bitcoin.com News reported no CoinDCX comment at press time, while later reports indicated that the company had issued cooperation statements.
Another issue to follow is how the investigation addresses tokenised stocks and derivatives allegedly executed on Hyperliquid, including the respective relevance of FEMA, the Securities Contracts Act, the SEBI Act and the RBI Act. Any formal enforcement action, findings or legal response would be material because the current claims remain allegations under investigation.
