ED searches crypto firms over alleged Rs 2,500 crore FEMA violations
22 Jun 2026, 12:19 PMThe ED alleged that these platforms advertised instant cross-border money transfer services using cryptocurrencies despite not being authorised payment system operators.
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The Directorate of Enforcement (ED) has conducted searches at six premises in Bengaluru as part of an investigation into alleged unauthorised cross-border money transfers using virtual digital assets (VDAs).
The searches, carried out on June 17 under the Foreign Exchange Management Act (FEMA), covered entities including Transak Technology India, Carretx Technologies, Mokshagna Technologies, Buyhatke Internet (Onramp.money), and Abhibha Technologies (Onmeta), as per the agency's press release.
Preliminary findings indicate alleged FEMA contraventions involving more than Rs 2,500 crore in unauthorised cross-border transfers, it added. The agency said it has also issued restraint orders on bank accounts holding around Rs 6 crore that were allegedly used for such transactions.
The investigation was initiated following complaints alleging large-scale violations of FEMA norms through crypto-based cross-border transactions. The agency claimed that several entities were offering on-ramp and off-ramp services that enabled users to convert fiat currency into cryptocurrencies such as USDT and vice versa, facilitating international fund transfers without authorisation from the Reserve Bank of India (RBI).
The ED alleged that these platforms advertised instant cross-border money transfer services using cryptocurrencies despite not being authorised payment system operators. The agency said the firms were not complying with RBI-mandated remittance requirements such as purpose codes and Foreign Inward Remittance Certificates (FIRCs).
In one case involving Mokshagna Technologies, which operates remittance platform Xpat (formerly Remit2Any), the ED alleged that funds collected from customers in the United States were converted into virtual digital assets and transferred to Indian crypto trading platforms. The proceeds from the sale of those assets were then distributed to beneficiaries in India, according to the agency.
The ED also alleged that Transak Technology India provided off-ramp services that enabled funds deposited in India to be converted into cryptocurrencies and subsequently withdrawn overseas. The agency further claimed that the company used virtual digital assets to transfer operational profits to a related entity in the United States.
In the case of Carretx Technologies, which operates the crypto trading application Carret, the ED alleged that the company facilitated crypto purchases and sales for retail users and engaged in over-the-counter transactions with foreign remittance applications for unauthorised transfers into India.
The ED and the Directorate General of GST Intelligence (DGGI) have also taken actions against online gaming and fintech companies in the last few months. The Head and Tale has compiled all these actions. Click here, to read.
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