TL;DR
- India’s Enforcement Directorate searched three Bengaluru premises linked to CoinDCX and Delta Exchange over alleged unauthorized cross-border crypto transactions under FEMA.
- Authorities allege CoinDCX converted rupees into USDT, routed trades through foreign platforms and mirrored derivatives positions abroad using overseas accounts.
- Delta Exchange allegedly routed substantial derivatives and tokenized-stock activity through CoinDCX, while both companies dispute wrongdoing and say normal operations continue during the investigation, which remains active and unresolved.
India’s Enforcement Directorate searched three Bengaluru premises linked to CoinDCX and Delta Exchange India on November 4 and 5 as part of a probe into alleged unauthorized cross-border financial transactions. In an official post, the agency said the case concerns crypto derivatives and real-world asset tokens. The investigation was opened after authorities received information alleging large-scale FEMA violations involving the companies operating both platforms. The searches place two Indian crypto exchanges under scrutiny for potential violations of the Foreign Exchange Management Act, or FEMA.
ईडी, बेंगलुरु ने क्रिप्टो टोकन डेरिवेटिव एवं वास्तविक विश्व परिसंपत्ति (आरडब्ल्यूए) टोकन से जुड़े बड़े पैमाने पर अनधिकृत सीमा-पार वित्तीय लेन-देन के मामले में फेमा, 1999 के अंतर्गत मेसर्स नेब्लियो टेक्नोलॉजीज प्राइवेट लिमिटेड (“कॉइनडीसीएक्स”) तथा मेसर्स एक्सेलियम टेक्नोलॉजीज… pic.twitter.com/vXwMU5uCTj
— ED (@dir_ed) November 12, 2026
The agency alleged that CoinDCX converted customer rupee deposits into USDT and routed them to foreign trading platforms to execute certain spot orders. It also claimed futures and options positions were mirrored one-for-one on overseas venues through an account associated with a Costa Rica-based entity that investigators described as existing only on paper. Authorities additionally alleged that CoinDCX maintained enterprise accounts on foreign platforms and paid transaction fees abroad using USDT. The alleged structure puts stablecoin infrastructure at the center of the investigation, with transaction volumes described as reaching thousands of crores of rupees.
Tokenized Stocks and Delta Exchange Draw Additional Scrutiny
Investigators also alleged that CoinDCX offered exposure to tokenized shares of companies including Apple, Google and Tesla through derivative positions executed on Hyperliquid, rather than purchases of underlying shares. The agency said those trades also involved converting customer funds into USDT before opening matching positions abroad. Volumes tied to this activity were likewise described as running into thousands of crores. The case highlights the regulatory complexity surrounding tokenized asset markets, especially when products combine domestic customer access, offshore execution and blockchain-based settlement structures.
Delta Exchange India faces separate allegations that a large share of its derivatives and tokenized-stock activity was routed through CoinDCX and then executed on foreign platforms. Authorities are also examining transfers to overseas associate entities and whether products offered by both companies conflict with other Indian securities and banking laws. The agency specifically cited the Securities Contracts (Regulation) Act, SEBI Act and RBI Act as areas requiring further examination. The investigation adds another compliance dimension to the RWA liquidity and trading debate. CoinDCX said it complied with Indian law and operations remained normal, while Delta denied cross-border VDA transfers. The allegations remain under investigation and do not constitute findings of guilt.
