ED searches CoinDCX, Delta Exchange over alleged FEMA breaches in crypto trades
The ED searched three Bengaluru premises linked to CoinDCX and Delta Exchange, alleging that crypto derivative and tokenised-stock orders were routed abroad in breach of FEMA.
Key points
- The ED's Bengaluru office searched three premises linked to CoinDCX and Delta Exchange on 4 and 5 November 2026 under FEMA.
- The ED alleges users' rupee deposits were converted into USDT and sent to foreign crypto platforms, in volumes it says run into thousands of crores.
- The ED says the platforms' products also appear to conflict with securities and RBI laws; these are allegations and its investigation continues.
The Enforcement Directorate (ED) searched three premises in Bengaluru linked to the crypto platforms CoinDCX and Delta Exchange on 4 and 5 November 2026 under the Foreign Exchange Management Act (FEMA), 1999. The ED alleges large-scale unauthorised cross-border transactions in crypto derivatives and tokenised stocks of foreign companies.
What Happened
According to the ED, CoinDCX is run by Neblio Technologies Private Limited and Delta Exchange India by Excelium Technologies Private Limited. The ED said both offered spot trading in crypto, futures and options on crypto tokens, and trading in tokenised stocks of foreign companies such as Apple, Google and Tesla.
The ED alleges that when a CoinDCX user deposited rupees and placed an order, the money was converted into the stablecoin USDT and sent to foreign platforms such as Binance, KuCoin, Bybit and Gate.io, through an account in the name of a Costa Rica-based group entity that the ED calls a paper entity. It says futures and options positions were mirrored one-to-one on those platforms, and tokenised-stock trades on Hyperliquid, a foreign decentralised platform. The ED says the volumes in each product run into thousands of crores, and that CoinDCX paid hundreds of crores in fees to foreign platforms in USDT in breach of FEMA.
For Delta Exchange India, the ED alleges that a large part of its derivative and tokenised-stock trading was routed through CoinDCX, in volumes of several thousand crores, and that hundreds of crores were sent to associate entities abroad, which is under investigation. The ED also said the products appear, prima facie, to be contrary to the Securities Contracts (Regulation) Act, the SEBI Act and the RBI Act, which it is examining.
These are allegations, not findings of guilt; the accused are presumed innocent until proven guilty in court, and due process continues.
What It Means
A FEMA search is a step in an investigation, not a penalty, and the release does not say any user's account has been frozen. The ED said its investigation is continuing.
Users of these platforms who face a problem with their funds can report suspected cyber fraud at https://cybercrime.gov.in or helpline 1930.
This report describes enforcement actions and allegations on the public record, attributed to the officials cited. An order, FIR or chargesheet is not a conviction; parties are presumed innocent until proven guilty.
Named in this report, or spotted an error? Corrections and responses: editor@oquilia.com. We correct errors promptly and record responses from named parties.
Sources & Citations
- Enforcement Directorate press release — Enforcement Directorate