ED raids at 2 Bengaluru crypto platforms reveal Costa Rica shell entity, overseas trades worth crores

New Delhi: The Enforcement Directorate (ED) conducted searches at premises linked to cryptocurrency trading platforms CoinDCX and Delta Exchange in Bengaluru on 4 and 5 November over alleged unauthorised cross-border transactions worth several thousand crore rupees.

The agency claims that Delta Exchange routed a substantial volume of its cryptocurrency derivatives and tokenised stock trades through CoinDCX, which executed them on overseas exchanges, allegedly circumventing India’s foreign exchange regulations.

According to an ED officer, the platforms allowed Indian customers to trade in cryptocurrency derivatives, including futures and options, and products linked to shares of foreign companies through overseas crypto exchanges, allegedly in violation of the Foreign Exchange Management Act (FEMA).

The investigation was initiated after the agency received information alleging large-scale FEMA violations by Neblio Technologies Private Limited, which operates CoinDCX, and Excelium Technologies Private Limited, which operates Delta Exchange, the officer said.

The officer said CoinDCX allegedly routed transactions through accounts opened in the name of a Costa Rica-based group entity on foreign cryptocurrency exchanges. The entity, the ED claims, existed only on paper and was used to facilitate cross-border trading.