India’s Enforcement Directorate (ED) conducted raids on three locations in Bengaluru associated with crypto exchanges CoinDCX and Delta Exchange on November 4 and 5, 2026. The agency, acting under the Foreign Exchange Management Act (FEMA), alleges the platforms facilitated large‑scale, unauthorized cross‑border transactions using stablecoins and tokenized assets, prompting a formal investigation.

Alleged foreign‑exchange violations

According to a statement released by the ED on November 6, CoinDCX allegedly converted Indian rupee deposits into USDT and executed matching spot and derivatives orders on foreign exchanges such as Binance, KuCoin, Bybit and Gate.io. The trades were reportedly routed through accounts held by a Costa‑Rica‑based “paper entity,” allowing users to bypass India’s foreign‑exchange controls. The ED claims the cumulative value of these cross‑border trades runs into hundreds of millions of dollars.

Tokenized stock trading and Delta’s role

The agency also says CoinDCX offered tokenized shares of companies like Apple, Google and Tesla, but the positions were actually derivatives opened on the decentralized exchange Hyperliquid. Delta Exchange, which runs a rupee‑settled platform for Indian users, is accused of executing a large share of its derivatives trading through CoinDCX and transferring tens of millions of dollars to overseas entities. Both exchanges deny any illegal cross‑border movement of crypto assets.

Responses from the exchanges

CoinDCX posted on X that the ED’s visit was “part of a routine enquiry” and that the exchange has fully cooperated, emphasizing compliance with FEMA, KYC and anti‑money‑laundering regulations as a FIU‑registered entity. Delta Exchange issued a similar statement, asserting that its business does not involve any cross‑border transfer of crypto assets and that its rupee‑settled market for Indian users continues to operate normally.

What to watch next

The investigation remains ongoing, and the ED may issue further notices or enforcement actions based on its findings. Observers will monitor whether additional crypto platforms in India face similar scrutiny, how the exchanges adjust their settlement mechanisms, and any potential regulatory guidance from the Reserve Bank of India regarding the use of stablecoins for cross‑border trading.