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India’s Financial Crimes Agency Searches CoinDCX, Delta Exchange Over Offshore Trades
India’s Enforcement Directorate has searched three Bengaluru premises linked to CoinDCX and Delta Exchange as part of an investigation into alleged unauthorised cross-border crypto trades. The agency says the transactions may have breached foreign exchange rules and other financial laws; both exchanges deny wrongdoing and say they are cooperating.
The searches took place on 4 and 5 November under the Foreign Exchange Management Act. The agency alleges CoinDCX routed rupee-funded trades through USDT and overseas exchanges, and that Delta’s derivatives trading was largely executed through CoinDCX; it says the sums involved reached hundreds of millions of dollars. Both firms say their services remain operational. The investigation comes after CoinDCX reported a $16 million loss from retired wallets, following a roughly $44 million exploit in July 2025.
In short
- India searched premises linked to CoinDCX and Delta Exchange.
- Investigators allege unauthorised cross-border crypto trades.
- Both exchanges deny violations and say trading remains operational.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The agency’s investigation is justified if the alleged routing of rupee-funded trades through stablecoins and overseas platforms bypassed foreign-exchange rules: those rules help enforce financial oversight and protect the integrity of cross-border flows. The reported scale of the transactions and the complexity of the trading arrangements make searches a reasonable way to establish what happened, while the earlier reported wallet losses may add to the case for close scrutiny.
The case against
Searches and public allegations can impose serious reputational and operational costs before wrongdoing has been established. The exchanges deny the allegations and say they are cooperating; cross-border crypto arrangements can be complex, so the legal treatment of particular transactions should be determined from evidence and clear rules rather than inference from their scale or structure. Any investigation should therefore be proportionate and preserve a fair opportunity for the firms to respond.