The Enforcement Directorate in India searched premises tied to CoinDCX and Delta Exchange India on November 4 and 5, 2026. The agency is looking at alleged unauthorized cross-border transactions and possible breaches of foreign exchange law. The searches covered three locations in Bengaluru. They targeted Neblio Technologies, which runs CoinDCX, and Excelium Technologies, which operates Delta Exchange India. The action came under Section 37 of the Foreign Exchange Management Act, the 1999 law that governs money entering and leaving India.
Searches and allegations
According to the agency, the case involves large cross-border activity linked to crypto token derivatives and tokenized real-world asset products. The ED says it acted on intelligence pointing to significant violations. It has not made a final finding, and the investigation is still at an early stage.
How funds allegedly moved
The ED’s version is that rupee deposits were converted into $USDT, the dollar-pegged stablecoin. That $USDT was then sent offshore by one of two routes. One route reportedly used a Costa Rica-based entity that the ED calls a paper entity. The other allegedly used direct API connections to international platforms, including Binance, KuCoin, Gate.io and Bybit. The agency puts the unauthorized cross-border flows at several thousand crores of rupees. There is also a fee angle. A substantial part of Delta Exchange India’s futures and options trading was reportedly executed offshore through CoinDCX. Transaction fees running into hundreds of crores were reportedly settled in $USDT.
Exchanges respond
Both companies dispute the ED’s account. CoinDCX says it complies with Indian law. Delta Exchange India denies that it made any cross-border transfers of virtual digital assets. In statements around November 11 and 12, both exchanges said normal operations were continuing and user funds remained secure. Both say they are cooperating with the inquiry. Perhaps the most important point for users is that no service disruption has been announced.
Wider regulatory questions
The probe now also covers possible violations of the Securities Contracts (Regulation) Act 1956, the SEBI Act 1992 and the RBI Act 1934. That expansion matters. The first two touch India’s securities rules, while the third governs the central bank. A case that began as a forex matter now reaches into derivatives regulation and monetary oversight. The allegations also focus on derivatives, a tricky area for regulators. Futures and options let traders bet on price moves using margin. When those bets are routed through offshore venues, a domestic watchdog loses sight of where money and risk sit. Stablecoins are the connective tissue in the ED’s account. Tokenized real-world asset products are part of the case too, a sign that authorities are watching newer crypto products, not just spot trading.
