India's Enforcement Directorate Searches CoinDCX and Delta Exchange

India's Enforcement Directorate searched premises linked to crypto exchanges CoinDCX and Delta Exchange India on November 4 and 5, 2026, alleging unauthorized cross-border transactions worth several thousand crores of rupees in violation of the Foreign Exchange Management Act. The searches covered three locations in Bengaluru and targeted Neblio Technologies, the operator of CoinDCX, and Excelium Technologies, which runs Delta Exchange India.

The agency acted under Section 37 of FEMA, the 1999 statute governing capital flows in and out of India. According to the ED, the case centers on large-scale cross-border activity tied to crypto token derivatives and tokenized real-world asset products, and the agency moved on intelligence indicating significant violations.

How the alleged routing worked

In the ED's account, Indian rupee deposits were converted into USDT, the dollar-pegged stablecoin, and then moved offshore by one of two channels:

• A Costa Rica-based entity that the agency characterizes as a "paper entity";
• Direct API connections to international platforms, including Binance, KuCoin, Gate.io and Bybit.

There is also a fee dimension. A substantial portion of Delta Exchange India's futures and options trading was reportedly executed offshore through CoinDCX, with transaction fees running into hundreds of crores settled in USDT.

How have the exchanges responded?

Neither company accepts the ED's version. CoinDCX states that it complies with Indian law. Delta Exchange India goes further and denies making any cross-border transfers of virtual digital assets at all. In statements issued on November 11 and 12, both exchanges said operations were continuing normally, user funds remained secure, and they were cooperating fully with the inquiry.

The probe is also widening in legal scope. The ED's investigation now covers potential violations of the Securities Contracts (Regulation) Act 1956, the SEBI Act 1992 and the RBI Act 1934. The first two statutes anchor India's securities framework; the third governs the central bank. A case that began as a foreign exchange matter now reaches into derivatives regulation and monetary oversight.

What does this change for Indian crypto operators?

The allegations concentrate on the segment of crypto that regulators find hardest to supervise: derivatives. Futures and options allow leveraged exposure to price moves, and when that flow reportedly routes through offshore venues, a domestic watchdog loses visibility into where the money and the risk actually sit. For exchanges relying on API integrations with global liquidity venues, the case signals that those technical connections are now treated as potential instruments of capital flight.

Stablecoins form the connective tissue of the alleged scheme. In the ED's telling, USDT served as the bridge converting rupees into an asset that could cross borders quickly. The named offshore platforms — Binance, KuCoin, Gate.io and Bybit — are among the largest global venues, and the case could sharpen scrutiny of how Indian platforms interact with international liquidity.

The inclusion of tokenized real-world asset products also matters. An enforcement action touching these newer instruments in India indicates authorities are monitoring more than plain spot trading.

What comes next is the operative question. The ED has not announced charges, but the expansion into securities and banking law opens a longer enforcement window, and any FEMA adjudication against the two operators would set a precedent for how offshore routing via stablecoins and APIs is penalized across India's exchange sector.