ED Calls Out Massive FEMA Violations In The Billions 💀
This probe rolls under Section 37 of the Foreign Exchange Management Act from 1999 which handles those cross-border financial flows. The ED says both exchanges allegedly shipped customer funds overseas to enable derivatives trading and exposure to tokenized shares of foreign firms without proper approval. They outlined three sneaky routes CoinDCX used for these deals. For spot trades the exchange reportedly swapped rupees into USDT then sent stablecoins to overseas spots like Binance, KuCoin and Gate.io to complete orders. These moves skipped India’s forex rules and went through a Costa Rica entity the ED called a paper company. The agency claims actual trades happened right on CoinDCX via APIs. A similar setup allegedly mirrored futures and options positions one-for-one on foreign platforms such as Binance, KuCoin, Bybit and Gate.io. The ED also questioned CoinDCX tokenized stock products covering stuff like Apple, Google and Tesla. Those were supposedly derivatives executed on Hyperliquid with funds turned into USDT before overseas matching. Each of the three channels involved tens of billions of rupees. It claims CoinDCX kept enterprise accounts on foreign exchanges held crypto assets there and paid billions in fees via USDT recorded as expenses which broke FEMA rules. Delta Exchange India got pulled in too with its spot futures options and tokenized shares. Investigators say much of its derivatives and tokenized trading routed through CoinDCX then overseas with values hitting several tens of billions of rupees plus separate checks on billions sent to overseas associates. The products might clash with the Securities Contracts Regulation Act the SEBI Act and the RBI Act. Both firms admitted the visits but pushed back with CoinDCX calling it routine and saying it cooperated fully.More Security Drama Hits CoinDCX 🕷️
CoinDCX dealt with fresh security issues in October 2026 over a year after losing around 44 million dollars in a July 19 2025 cyberattack on an internal liquidity account. Customer cold wallet funds stayed safe and the exchange covered losses from its own reserves. On October 21 around 15.99 million USDT plus some TRX shifted from Tron addresses linked to CoinDCX over to Binance and OKX. The exchange first denied active wallet breaches and blamed old deposit addresses hit in the 2025 attack. Blockchain sleuths like ZachXBT doubted that story so CoinDCX later admitted the loss in a post noting some customers kept depositing into retired addresses. 🌙🦇💀✨🔥🕸️Just another echo from the void by iconofsin.eth 💖
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