ED searches CoinDCX, Delta Exchange over alleged illegal cross-border crypto transfers

The Directorate of Enforcement (ED) has searched three premises linked to cryptocurrency exchanges CoinDCX and Delta Exchange India over suspected violations of foreign exchange regulations involving unauthorised cross-border transactions. 

The searches were conducted in Bengaluru between November 4 and 5 under the Foreign Exchange Management Act (FEMA), 1999.

According to the agency, the transactions under investigation involve thousands of crores of rupees. The ED alleged that both platforms facilitated spot trading, futures and options (F&O), and trading in tokenised shares of foreign companies using cryptocurrencies without the required authorisations.

The investigation began after the agency received information about possible forex violations by the two exchanges. The ED also alleged that CoinDCX promoted certain trading products despite not having the necessary approvals.

The ED alleged that CoinDCX converted customers' rupee deposits into stablecoins, primarily USDT, before transferring them to overseas crypto platforms, including Binance, KuCoin, Gate.io and Bybit. According to the agency, these transactions bypassed the prescribed foreign exchange regulations for cross-border transfers.

For spot trading, the agency alleged that CoinDCX used an account held in the name of a Costa Rica-based entity to route USDT to overseas exchanges. The ED described the entity as a paper company and claimed that the transactions were executed directly through CoinDCX's application programming interfaces (APIs).

Similar arrangements were allegedly used for its F&O services. The agency claimed that when customers placed orders on CoinDCX, corresponding positions were opened on overseas platforms through APIs, with settlements taking place outside India.

The ED further alleged that CoinDCX routed tokenised foreign stock trades through Hyperliquid, an overseas decentralised trading platform. Customer funds were reportedly converted into USDT to open positions, with settlements conducted on the foreign platform.

The agency said the transactions across spot, derivatives and tokenised stock products involved thousands of crores of rupees. It also alleged that CoinDCX paid hundreds of crores in transaction fees to overseas platforms in stablecoins, potentially violating forex regulations.

The ED alleged that Delta Exchange India offered spot trading, crypto derivatives and tokenised foreign stocks through cryptocurrencies without the required regulatory permissions.

According to the agency, a significant portion of the exchange's derivatives and tokenised stock transactions was routed through CoinDCX, which allegedly executed them on overseas platforms.

The investigation also covers alleged transfers of hundreds of crores of rupees by Delta Exchange India to its overseas associate entities.

The ED said the products offered by both exchanges appear to have prima facie violated provisions of the Securities Contracts (Regulation) Act, 1956, the SEBI Act, 1992, and the RBI Act, 1934. The investigation is ongoing.

The latest searches are part of the agency's wider investigation into suspected foreign exchange violations involving cryptocurrency platforms. Recently, the ED initiated a probe into alleged unauthorised cross-border transfers exceeding Rs 4,940 crore involving crypto platforms Mudrex and Saber.money, along with DeFi protocol Instadapp and its associated platform Fluid.

In June 2026, the agency also searched six premises linked to five crypto platforms: Transak, Carret, Xpat, Onramp.money and Onmeta, over suspected illegal cross-border crypto transactions.