ED Searches CoinDCX and Delta Exchange India in Forex Probe

What the agency alleges

According to the ED, both platforms offered spot trading, futures and options (F&O) and tokenised shares of foreign companies, all through cryptocurrencies, without being authorised to do so. It also says CoinDCX advertised these products.

The agency claims user funds deposited in rupees were converted into stablecoins, mainly USDT, and sent to overseas platforms including Binance, KuCoin, Gate.io and Bybit, circumventing forex rules. For spot trades, it says CoinDCX used an account in the name of a Costa Rica-based entity, described as a "paper entity", while the transactions were actually executed through CoinDCX APIs. For F&O, it alleges matching positions were opened on foreign platforms after users placed orders. Tokenised-stock trades were allegedly routed through Hyperliquid. The ED also says CoinDCX paid hundreds of crores in fees to foreign platforms in stablecoins.

On Delta Exchange India, the ED alleges that a large share of derivatives and tokenised-stock transactions was routed through CoinDCX, which executed them on foreign platforms, and that the exchange sent hundreds of crores of rupees to overseas associate entities.

Responses and wider crackdown

CoinDCX has not yet issued a statement. Delta Exchange India said it cooperated fully and supplied the information requested. In a post on X, it said it is not involved in "any cross-border transfer of VDAs in any form or manner".

The ED said the products appear prima facie to contravene the Securities Contracts (Regulation) Act, 1956, the SEBI Act, 1992 and the Reserve Bank of India Act, 1934. The investigation is ongoing.

The searches follow a probe launched days earlier into Mudrex, Saber.money, Instadapp and Fluid over transfers worth more than ₹4,940 crore, and June searches linked to Transak, Carret, Xpat, Onramp.money and Onmeta.