India’s Enforcement Directorate searched three premises in Bengaluru connected to CoinDCX and Delta Exchange India between November 4 and 5, 2026. The action targets alleged large-scale unauthorized cross-border transactions in crypto token derivatives and real-world asset tokens, carried out under the Foreign Exchange Management Act, 1999.

The agency linked the sites to Neblio Technologies, the parent of CoinDCX, and Excelium Technologies, which operates Delta Exchange India. Officials stated that the case involves substantial volumes of activity running into thousands of crores of rupees.

Details of the Allegations

According to the Enforcement Directorate, CoinDCX users deposited Indian rupees that were converted into stablecoins, primarily USDT, and then transferred to overseas platforms including Binance, KuCoin, Gate.io and Bybit. Investigators claim these transfers occurred through an account held in the name of a Costa Rica-based company described as a paper entity, with actual order execution handled via the exchange’s application programming interfaces.

Similar routing is alleged for futures and options products. The agency said that when users placed orders on CoinDCX, the platform opened matching positions on foreign venues and settled them abroad. Tokenized stock trading was said to have run through the decentralized platform Hyperliquid. CoinDCX is further alleged to have paid hundreds of crores of rupees in fees to these foreign platforms in stablecoins and to have maintained crypto assets in enterprise accounts overseas, arrangements the Directorate views as inconsistent with foreign exchange rules.

Delta Exchange India faces related claims. A substantial portion of its derivatives and tokenized-stock activity is said to have passed through CoinDCX before reaching foreign platforms. The exchange is also alleged to have transferred hundreds of crores of rupees to associated entities abroad. The Directorate indicated that the products offered by both firms appear to conflict with rules administered by the Securities and Exchange Board of India and the Reserve Bank of India.

Company Responses

Delta Exchange India stated that officials visited on November 4 and 5 and that it cooperated fully. The company said its business does not involve any cross-border transfer of virtual digital assets, operates as a rupee-settled exchange for Indian users only, has been registered with the Financial Intelligence Unit since 2023, and that trading, deposits and withdrawals continue without disruption. User funds remain in Indian banks, according to the exchange.

CoinDCX described the visit to its Bengaluru office as a routine enquiry and said it supplied the requested information. The exchange stated that it complies with FEMA along with know-your-customer and anti-money-laundering requirements, and that its platform remains fully operational.

Broader Context and Next Steps

The searches form part of a continuing series of Enforcement Directorate actions focused on crypto platforms and cross-border fund flows. In the days preceding these raids, the agency examined entities including Mudrex, Saber.money and Instadapp’s Fluid platform over alleged transfers exceeding $525 million. Earlier in the year it had searched premises linked to several other firms involved in on-ramp and related services.

No penalties, charges or asset freezes have been announced. The Directorate said inquiries remain ongoing. Key outstanding questions include whether further measures such as asset freezes or summons to executives will follow, and whether the securities regulator will open a parallel examination of the derivatives and tokenized-stock offerings.

Neither company has been found guilty of any violation. Both continue to operate while the investigation proceeds.