India’s financial crimes investigation agency has raided cryptocurrency exchanges, CoinDCX and Delta Exchange, as part of an investigation into alleged illegal cross-border transactions.

The action highlights growing regulatory scrutiny of crypto platforms in India particularly their compliance with foreign exchange rules and controls on cross-border fund transfers.

The Enforcement Directorate (ED) said the searches, conducted on November 4 and 5 2026 in Bengaluru, targeted three premises linked to the companies operating the two exchanges.

The agency alleges that CoinDCX converted customers’ rupee deposits into USDT and routed funds to overseas exchanges, including

• Binance,

• KuCoin,

• Gate.io and

• Bybit,

to execute spot and derivatives trades.

STABLECOINS | India’s USDT Premium Doubles in 2026 as Regulatory Crackdown Squeezes Dollar Liquidity

It also alleged that

• CoinDCX facilitated tokenised stock trading through the decentralised exchange, Hyperliquid, while

• Delta Exchange routed a substantial volume of its derivatives and tokenised-stock trades through CoinDCX.

The ED is investigating transactions worth several thousand crore rupees and possible violations of India’s Foreign Exchange Management Act (FEMA), alongside other securities and financial regulations.

Both exchanges said their operations remain normal. CoinDCX said it complies with Indian laws while Delta denied facilitating cross-border transfers of virtual digital assets.

The investigation is ongoing.

REGULATION | Apple Removes Jack Dorsey’s BitChat from India App Store After Government Demand

Stay tuned to BitKE for crypto crime updates globally. 

Join our WhatsApp channel here.

Follow us on X for the latest posts and updates

Join and interact with our Telegram community

__________