ED Searches CoinDCX & Delta Exchange Over Alleged Illegal Cross-Border Transfers

The Enforcement Directorate (ED) conducted searches at three locations associated with crypto exchanges CoinDCX and Delta Exchange India (DEI) on November 4-5 in Bengaluru. The agency alleged that the exchanges facilitated unauthorised cross-border transactions involving crypto derivatives and tokenised foreign stocks, running into thousands of crores of Rupees.

The ED alleged that CoinDCX advertised products it was not authorised to offer, while Delta Exchange India cooperated fully with the officials and claimed it was not involved in any cross-border transfer of VDAs. The ED stated that user funds were converted into stablecoins, primarily USDT, and transferred to overseas crypto platforms, contravening forex rules.

The investigation is ongoing, with the searches part of a broader clampdown on forex violations involving crypto platforms.