India's Enforcement Directorate conducted searches at three Bengaluru locations linked to crypto exchanges CoinDCX and Delta Exchange on November 4 and 5. The agency alleges that both platforms facilitated unauthorized cross-border transactions involving crypto derivatives and tokenized assets, totaling hundreds of millions of dollars.
Investigators claim CoinDCX used stablecoins like USDT to execute trades on foreign platforms such as Binance, KuCoin, Bybit, and Gate.io, bypassing national regulations. The agency alleges these operations utilized a Costa Rica-based shell entity and APIs to move funds, while tokenized shares of companies like Tesla and Apple were routed through the decentralized exchange Hyperliquid.
The probe also focuses on Delta Exchange, which allegedly transferred tens of millions of dollars to overseas group entities. The agency states that CoinDCX paid tens of millions of dollars in fees to foreign exchanges in USDT, violating the Foreign Exchange Management Act. The investigation into both companies remains ongoing.
Both exchanges have denied wrongdoing. CoinDCX stated it cooperated with the inquiry and maintains compliance with Indian laws, including KYC and anti-money laundering obligations. Delta Exchange asserted that its business does not involve cross-border transfers of crypto assets and that it operates a dedicated rupee-settled platform for local users.
