India's Enforcement Directorate Raids CoinDCX and Delta Exchange India in Forex Probe

India's financial crimes agency went through the doors of two crypto exchanges this month. The Enforcement Directorate searched three locations in Bengaluru on November 4 and 5, 2026, targeting Neblio Technologies, which operates CoinDCX, and Excelium Technologies, the company behind Delta Exchange India. The agency acted under Section 37 of the Foreign Exchange Management Act, the 1999 law governing money crossing India's borders.

According to the ED, the case grew out of intelligence on large-scale cross-border activity tied to crypto token derivatives and tokenized real-world asset products. The agency says rupee deposits were converted into USDT, the dollar-pegged stablecoin, then allegedly shipped offshore one of two ways: through a Costa Rica-based company the ED calls a paper entity, or through direct API connections to Binance, KuCoin, Gate.io and Bybit. The ED pegs the alleged unauthorized outflows at several thousand crores of rupees.

There is a fee trail too. The ED says a substantial share of Delta Exchange India's futures and options trading was executed offshore through CoinDCX, with transaction fees running into hundreds of crores settled in USDT. Neither firm is accepting that account. CoinDCX says it follows Indian law, while Delta Exchange India flatly denies making any cross-border transfers of virtual digital assets.

In statements issued November 11 and 12, both exchanges said normal operations were continuing, user funds were secure, and they were cooperating fully with the inquiry. The probe is also growing: the ED is now examining possible violations of the Securities Contracts (Regulation) Act 1956, the SEBI Act 1992 and the RBI Act 1934. A case that started as a forex matter now reaches into derivatives oversight and the central bank's turf.