India's Enforcement Directorate is investigating CoinDCX and Delta Exchange India for alleged breaches of the Foreign Exchange Management Act, after searching three Bengaluru premises on November 4-5 linked to their operators, Neblio Technologies and Excelium Technologies.

The agency alleges CoinDCX converted users' rupee deposits into USDT and executed their trades on Binance, KuCoin and Gate.io through accounts held by a Costa Rica-registered entity, which it calls a paper company. It puts the volume of these cross-border spot trades at thousands of crores of rupees.

Products marketed as tokenised Apple, Google and Tesla stocks allegedly gave users no share ownership: CoinDCX reportedly opened matching positions on Hyperliquid instead.

The probe follows an October search of RPFAS Technologies, operator of Mudrex and Saber Money, where the ED flagged over Rs 4,600 crore in unauthorised transfers and foreign balances. The allegations against CoinDCX and Delta Exchange remain under investigation.