• CoinDCX has partnered with the Enforcement Directorate (ED) to securely store seized crypto assets, using multi-signature and MPC wallets for enhanced security.
  • The collaboration follows major ED crackdowns on crypto fraud, including a ₹1,646 crore seizure in February, its largest to date.

CoinDCX has announced a partnership with the Enforcement Directorate (ED) to manage the custody of crypto assets seized as part of ongoing investigations.

The Mumbai-based crypto exchange, registered with the Financial Intelligence Unit (FIU), will provide secure storage for digital assets confiscated during the ED’s nationwide crackdown on illegal crypto operations.

As part of the agreement, CoinDCX will deploy a dedicated team trained in advanced security protocols to support the agency’s efforts.

“CoinDCX has worked closely with the directorate, facilitating the opening of the custodian account on an urgent basis,” said Parneet Kumar, Assistant Director at the Directorate of Enforcement.

The exchange will utilize multi-signature and multi-party computation (MPC) wallets for asset storage. Multi-signature wallets require multiple keys for withdrawals, while MPC wallets divide a private key into multiple encrypted shards stored across different locations. These methods enhance security by eliminating single points of failure, reducing the risk of hacks.

“We provide best-in-class security, compliance solutions, and unparalleled expertise in digital asset management. We are deeply honoured by this responsibility and recognise the significance it holds,” said Sumit Gupta, Co-founder of CoinDCX.

The ED’s decision to collaborate with CoinDCX follows a series of high-profile enforcement actions. In recent months, the agency has conducted search operations in Delhi, Jaipur, and Mumbai related to a large-scale crypto fraud worth approximately ₹600 crore. As part of the probe, officials seized ₹2.18 crore from Chirag Tomar, alleged to be the mastermind behind the scheme.

In mid-February, the ED confiscated its largest-ever cryptocurrency haul, valued at ₹1,646 crore, during an investigation into a fraudulent investment scheme. However, the agency has not yet disclosed the total amount of seized crypto to be transferred to CoinDCX or the specific cases these assets are linked to.

Previously, the ED stored confiscated digital assets in wallets managed by ZebPay and WazirX. In September 2024, Binance claimed to have worked with the ED to crack down on a gaming scam involving $47.6 million (approximately ₹400 crore), with its Financial Intelligence Unit (FIU) assisting in tracing funds and exposing the fraud network.

The partnership with CoinDCX signals the ED’s continued focus on strengthening oversight and security in handling seized crypto assets amid increasing scrutiny of digital financial crimes.

Edited by Harshajit Sarmah