ED Goes Hunting: Indian Regulators Raid CoinDCX, Delta Exchange Over Crypto Chaos

> India's Enforcement Directorate has wrapped up searches at three premises in Bengaluru, linking the action directly to crypto exchanges CoinDCX and Delta Exchange. The agency is investigating allegations of massive Foreign Exchange Management Act (FEMA) violations related to cross-border crypto deals.

> According to the ED, the exchanges were allegedly offering services far beyond their license, including trading futures and options in tokenized assets and foreign stocks. CoinDCX even advertised trades in US Stock Futures, starting as low as ₹100.

> The investigators are particularly focused on a scheme they call “double hop” spot trading on CoinDCX. This complex arrangement reportedly involved running transactions through a paper entity based in Costa Rica, bypassing standard cross-border transfer frameworks.

> The volume of these alleged cross-border spot and derivatives transactions runs into thousands of crores. Furthermore, the ED noted that CoinDCX’s futures and options trading was apparently mirrored on major global platforms like Binance and Bybit.

> This investigation comes shortly after CoinDCX faced intense scrutiny over a separate incident involving a deposit wallet loss of $16 million. The agency confirms the investigation is ongoing and the allegations remain unproven.

entities: [CoinDCX, Delta Exchange, Enforcement Directorate, Binance, Bybit, KuCoin, Gate.io, Costa Rica], crypto_tag: null}