The tweet was deleted by the author.
But we saved everything 🙂.
Indian authorities raid CoinDCX and Delta Exchange over suspicious crypto transactions
India's Enforcement Directorate (ED) conducted raids at the offices of cryptocurrency exchanges CoinDCX and Delta Exchange as part of an investigation into alleged foreign exchange law violations. According to the agency, the companies processed transactions worth hundreds of millions of dollars through overseas trading platforms, including Binance, Bybit and KuCoin.
The raids took place on November 4 and 5 at three premises in Bengaluru linked to the exchanges' operators, Neblio Technologies and Excelium Technologies. The agency's statement cited potential violations of the Foreign Exchange Management Act (FEMA).
View post on X Loading...
Investigators are examining the activities of platforms that provided access to cryptocurrency derivatives and tokenized shares of foreign companies. The ED believes some of these services were offered without the necessary authorization.
CoinDCX suspected of routing trades through Binance and Bybit
According to investigation documents, CoinDCX used the USDT stablecoin to execute customer orders on overseas exchanges Binance, KuCoin, Bybit and Gate.io.
Users deposited Indian rupees, after which the platform converted the funds into USDT and opened corresponding positions overseas. The transactions were conducted through accounts belonging to an affiliated company registered in Costa Rica, which investigators described as a shell entity.
The exchanges' application programming interfaces (APIs) were used to transmit trading orders. The agency believes this arrangement allowed the platform to circumvent India's cross-border capital movement regulations.
Trading in tokenized shares of Apple, Google and Tesla also attracted scrutiny. According to investigators, customers were effectively offered derivative instruments, with positions opened on the decentralized platform Hyperliquid.
The ED also alleges that CoinDCX held cryptocurrency in corporate accounts on overseas exchanges and paid them tens of millions of dollars in fees denominated in USDT.
According to the agency, some Delta Exchange transactions were executed through CoinDCX. Investigators are also examining transfers worth tens of millions of dollars to the group's overseas entities.
Crypto exchanges reject allegations and pledge cooperation
CoinDCX confirmed the ED's visit, describing it as a routine inspection. The company said it complies with Indian law, including FEMA requirements, customer identification procedures and anti-money laundering regulations.
Delta Exchange also said it was cooperating with investigators. The exchange rejected allegations of cross-border crypto asset transfers, emphasizing that it serves Indian users through a rupee-settled platform.
In late October, CoinDCX temporarily restricted futures trading following an incident at Binance that affected access to external liquidity. The restrictions applied to opening high-risk positions and did not affect transactions involving customer funds.
At the time, the exchange emphasized that deposits and withdrawals remained unaffected. The measures were intended to reduce derivatives trading risks until normal liquidity conditions were restored.
Earlier, we reported that U.S.-based Coinbase received approval from India's antitrust regulator to increase its minority stake in CoinDCX's parent company. Coinbase has been investing in the Indian cryptocurrency exchange since 2020.
This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.
Subscribe to TU news
Did you like the article?
Top News
Top 5 companies for you
United States
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
Live News
