CoinDCX Delta Exchange ED raid: what Indian traders should know

India’s Enforcement Directorate said its Bengaluru office searched three premises connected with CoinDCX and Delta Exchange on November 4 and 5, 2026, under Section 37 of the Foreign Exchange Management Act, 1999, according to the agency’s press release.

The ED identified Neblio Technologies Private Limited as CoinDCX’s operator and Excelium Technologies Private Limited as the operator of Delta Exchange India in the same release.

The investigation concerns alleged unauthorized cross-border transactions involving crypto derivatives and tokenized real-world assets, the ED said. These are allegations under investigation, not court findings.

The ED alleged that CoinDCX converted customer rupee deposits into USDT and routed trades to overseas platforms, including Binance, KuCoin and Gate.io, through an account associated with a Costa Rica-based entity, according to CNBC-TV18.

The agency also alleged that CoinDCX matched customer futures and options orders with corresponding positions on Binance, KuCoin, Bybit and Gate.io, with settlement occurring on those overseas exchanges, CNBC-TV18 reported.

The alleged cross-border spot and derivatives activity ran into several thousand crore rupees, while hundreds of crore rupees in transaction fees were allegedly paid to foreign platforms with stablecoins such as USDT, according to CoinDesk’s account of the ED’s claims.

The ED further alleged that a substantial portion of Delta Exchange India’s derivatives and tokenized-stock activity was routed through CoinDCX and then executed on foreign crypto platforms, according to the agency’s press release.

CoinDCX said it cooperated with the inquiry, maintained that it complies with applicable Indian law, and reported that trading, deposits and withdrawals remained operational, according to CoinDesk.

Delta Exchange India denied making cross-border transfers of virtual digital assets, described its Indian platform as INR-settled, and said trading, deposits and withdrawals continued normally, with customer funds held in Indian banks, according to Decrypt.

Those statements do not resolve the ED’s allegations. The transaction records behind the alleged Costa Rica-based entity and offshore execution accounts have not been supplied in the verified research.

For a trader weighing a centralized exchange against self-custody and on-chain perpetuals, the case puts venue structure and execution routing at the center of due diligence. The ED’s allegations concern where orders were executed, how rupees were converted, and whether value moved across borders, according to the agency’s release and CNBC-TV18.

The exchanges said trading, deposits and withdrawals remained available after the searches, as reported by CoinDesk and Decrypt. The verified research does not independently establish whether any customer position, balance or withdrawal was affected beyond those company statements.

The verified research leaves several material questions open. Before relying on either the agency’s allegations or the exchanges’ assurances, watch for primary documents that answer them:

• Does the ED issue a formal show-cause notice, seek penalties, seize assets or close the investigation without further action?
• Do transaction records support or contradict the alleged Costa Rica-based account and offshore execution routes?
• How do the exchanges reconcile their compliance statements and Delta’s denial of cross-border VDA transfers with the routes alleged by the ED?
• Were any customer positions, balances or withdrawals affected after the searches?
• Do SEBI, the Reserve Bank of India or another regulator take separate action concerning the derivatives or tokenized-stock products?
• How much of the cited activity relates to spot, derivatives, tokenized stocks, fees or transfers to overseas affiliates, and do those categories overlap?