Coin Edition and Bitcoin.com News agree on the ED's FEMA allegations against CoinDCX and Delta Exchange India but disagree on whether CoinDCX issued a public response to the raids.
What all sources agree on
- The ED's Bengaluru office searched three premises linked to Neblio Technologies (CoinDCX) and Excelium Technologies (Delta Exchange India) on Nov. 4 and 5.
- The investigation is under the Foreign Exchange Management Act (FEMA) and involves crypto token derivatives and tokenised real-world assets.
- The ED alleges cross-border trade volumes worth several thousands of crores of rupees, routed to overseas platforms including Binance, KuCoin, Gate.io and Bybit.
- The ED alleges Delta Exchange India's derivatives trades were largely routed through CoinDCX before reaching foreign venues.
- Delta Exchange India denies any cross-border transfer of VDAs, says it cooperated fully with officials, and states trading, deposits and withdrawals continue as normal.
- The ED said the products on offer also appear to breach rules under the Securities Contracts (Regulation) Act, the SEBI Act and the RBI Act.
Where the reports disagree
1Whether CoinDCX issued a public comment on the ED probe
CoinDCX has not yet commented on the probe.
CoinDCX described the Nov. 4 visit to its Bengaluru office as a "routine enquiry" and said it provided the information requested. It said it complies with FEMA and all know-your-customer and anti-money-laundering rules, and that its platform is fully operational.
What would settle it: A public statement, press release, or verified social media post from CoinDCX addressing the Nov. 4 ED visit.
What to make of it
Treat the ED's allegations and Delta Exchange India's denial as established by both reports; do not assume CoinDCX either stayed silent or issued a 'routine enquiry' statement until a direct CoinDCX statement is located.
Treat the ED's allegations and Delta Exchange India's denial as established by both reports; do not assume CoinDCX either stayed silent or issued a 'routine enquiry' statement until a direct CoinDCX statement is located.