India’s ED Launches Major Crackdown on Crypto-Enabled Unauthorized Cross-Border Transfers
Cryptocurrency is one of the major risks to any Government of the world, owing to it anonymous and complex nature of 'asset' transfer.
Bengaluru, June 20, 2026,
In one of the most significant enforcement actions against the misuse of virtual assets, the Directorate of Enforcement (ED), Bengaluru Zonal Office, conducted searches on June 17, 2026, at six premises across Bengaluru.
The operation targeted multiple entities allegedly facilitating large-scale unauthorized cross-border money transfers through Virtual Digital Assets (VDAs) in clear violation of the Foreign Exchange Management Act (FEMA), 1999.
The raids, carried out under Section 37 of FEMA, have exposed a sophisticated network of on-ramp and off-ramp crypto services operating without Reserve Bank of India (RBI) authorization.
These platforms enabled users to convert fiat currency into cryptocurrencies (notably stablecoins such as USDT) and move funds across borders outside official banking channels.
Entities Targeted
The searches covered the following companies and their consumer-facing brands:
- Transak Technology India Private Limited, Transak
- Carretx Technologies Private Limited, Carret
- M/s Mokshagna Technologies Private Limited, Xpat (formerly Remit2any)
- M/s Buyhatke Internet Pvt. Ltd., Onramp.money
- M/s Abhibha Technologies Private Limited, Onmeta
None of these entities are authorized by the RBI to undertake cross-border remittance or payment system operations.
Yet they were openly advertising instant global money transfers, buying/selling/swapping of crypto, and seamless fiat-to-crypto conversions on their websites and mobile applications.
How the Scheme Worked: The Modus Operandi
Investigations have revealed a consistent pattern across these platforms:
- Customers (often based abroad, particularly in the USA) registered on the platforms and deposited funds into the Indian company’s bank account.
- The money was converted into VDAs/stablecoins.
- The digital assets were transferred to Indian crypto trading platforms.
- Large volumes were sold through OTC (Over-The-Counter) deals.
- Sale proceeds were credited to the Indian entity’s accounts and then distributed to recipients in India or routed to related foreign entities.
Specific cases uncovered:
- M/s Mokshagna Technologies Pvt Ltd (Xpat): Funds collected from US customers were converted into VDAs, moved to Indian platforms, liquidated via high-volume OTC transactions into company accounts, and then distributed domestically. The entire operation was allegedly controlled from the USA by the main promoter with active support from family members in India.
- Transak Technology Pvt Ltd: The entity offered off-ramp services, money deposited in India was converted to VDA and withdrawn outside India. Operational profits were also transferred to its related US entity (Transak Inc USA) via VDA wallets.
- Carretx Technologies Pvt Ltd (Carret): Through its mobile app, users deposited INR into the company’s account, received corresponding crypto in their wallets, and could sell it. The entity further engaged in OTC deals with foreign-based remittance apps to facilitate unauthorized inflows into India.
These operations systematically bypassed RBI-mandated channels (such as purpose codes, FIRC reporting, and authorized dealer banks) by routing transactions through related foreign entities, shell companies in tax havens, and foreign crypto platforms.
Scale of the Violations
Preliminary findings indicate FEMA contraventions exceeding ₹2,500 crore.
Restraint orders have already been placed on bank accounts of some entities holding approximately ₹6 crore, which were being used to facilitate these unauthorized transfers.
Further investigation is underway and is expected to uncover additional layers of the network.
Why This Action Matters
This operation represents a strong, coordinated response to the growing threat of crypto being weaponized for unauthorized remittances and potential money laundering.
While India has created a regulatory framework for virtual digital assets (including taxation and PMLA obligations for exchanges), entities providing payment system services, especially cross-border on-ramp/off-ramp facilities, require specific RBI authorization.
These five entities operated in a regulatory grey zone, openly courting retail users with promises of “fastest way to convert fiat to crypto and transfer globally.”
By acting decisively against both the Indian operators and their foreign-linked structures, the ED has sent a clear message: technological innovation in finance will be welcomed only when it operates within the bounds of law.
The crackdown protects the integrity of India’s foreign exchange management system, safeguards legitimate remittance channels, and deters the use of crypto for illicit capital movement.
Ongoing Probe
The ED has stated that investigation is under progress.
More premises, individuals, and financial trails are likely to be examined in the coming weeks.
The restraint on bank accounts and the scale of the alleged violations suggest that this could be one of the largest FEMA cases involving virtual assets to date.
India’s proactive enforcement in this space positions it among the more vigilant regulators globally when it comes to balancing crypto innovation with financial security.
As the digital asset ecosystem matures, actions like these will be critical in ensuring that bad actors cannot exploit regulatory gaps for personal or illicit gain.