India’s Enforcement Directorate (ED) has officially assigned CoinDCX to manage seized digital assets. The country’s financial crime regulator expects CoinDCX to provide a robust custody infrastructure to store and manage crypto assets confiscated during investigations into financial crimes.
Commenting on the development, CoinDCX co-founder Sumit Gupta said, “To ensure the highest level of protection for seized assets, we have deployed a specialized team armed with advanced security protocols.”
“CoinDCX has been cooperative and assisted in the seizure process, providing valuable support in the investigation led by the ED,” said Parneet Kumar, Assistant Director at the ED. “The company has worked closely with the directorate, ensuring compliance with all legal requirements and facilitating the opening of the custodian account on urgent basis.”
Indian law enforcement picks CoinDCX for seized crypto custody
India’s Enforcement Directorate (ED) has selected CoinDCX to manage seized cryptocurrency assets, ensuring secure custody during financial crime investigations. CoinDCX will implement advanced security pic.twitter.com/iIph0BIViL
— CoinsCapture (@CoinsCapture) March 5, 2025
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Indian Government Leverages Private-Sector Expertise
India’s regulatory body is leveraging private-sector expertise to address the challenges posed by cryptocurrency fraud.
CoinDCX has already demonstrated its commitment to compliance by assisting the ED in previous investigations and facilitating the opening of custodian accounts on an urgent basis.
The ED’s collaboration with CoinDCX comes in the wake of several high-profile cryptocurrency fraud cases that have rocked India.
Two notable examples are the GainBitcoin and BitConnect scams, which collectively resulted in the seizure of digital assets worth nearly $200 million.
The ED seized digital assets worth approximately INR 1,646 crore ($190 million) in a Prevention of Money Laundering (PMLA) case, linked to the BitConnect Ponzi scheme.
According to a press release dated 15 February 2025, the ED conducted multiple raids across Gujarat on the 11th and 15th of February 2025. During this raid, they confiscated substantial amounts of cryptocurrency, cash, an SUV, and other digital devices.
“We truly believe we are still at the beginning of something huge,” Says CoinDCX Co-Founder
Today, CoinDCX is valued at $2.3 billion.
“When the internet was in its early stages in the 2000s, no one imagined companies such as Google or Amazon would become what they are today,” said Gupta in a 4 March 2025 interview with local media, as he insisted that CoinDCX is at the beginning of something huge.
CoinDCX has grown significantly since its inception, pointed out Gupta. “Today, we are a team of over 500 employees, with offices across key cities in India, including Mumbai, Bengaluru, and Delhi.”
“Last year, we acquired BitOasis, one of the pioneering crypto platforms of the MENA region,” he added. “We want to be present in more such crypto-friendly countries.”
Talking about India and India’s tech capabilities, CoinDCX believes that India can build technology and products that can match any global level.
India’s trading volume in cryptocurrencies was approximately $1.9 billion in the fourth quarter of 2024. It has been estimated that the Indian crypto market will expand far beyond $15 billion by 2035 despite huge taxes. The country has a large number of young, digitally literate citizens. Therefore, there is a natural inclination towards crypto and other on-chain digital assets.
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Key Takeaways
CoinDCX will provide a robust custody infrastructure to store and manage crypto assets confiscated during investigations into financial crimes.
This partnership represents a milestone for India’s regulatory framework, as it leverages private-sector expertise to address the challenges posed by cryptocurrency fraud.
