ED searches Bengaluru firms over alleged crypto-linked cross-border money transfers; probe estimates over Rs 2,500 crore

Bengaluru: The Directorate of Enforcement (ED) has conducted searches at six premises linked to multiple entities in Bengaluru in connection with alleged unauthorised cross-border money transfers using virtual digital assets (VDAs) exceeding Rs 2,500 crore, the agency said.

Bank accounts with balances of around Rs 6 crore have also been frozen, the agency said in a statement.

The searches were carried out by the ED’s Bengaluru zonal office on Wednesday at locations linked to Bengaluru-based entities accused of operating crypto “on-ramp” and “off-ramp” services without regulatory approval.


The entities include Transak Technology India (Transak), Carretx Technologies (Carret), Mokshagna Technologies (Xpat, formerly Remit2any), Buyhatke Internet (Onramp. money) and Abhibha Technologies (Onmeta).

On-ramp services refer to conversion of Indian rupees into crypto assets such as Bitcoin or stablecoins like USDT, while off-ramp services involve conversion of crypto back into rupees and transfer to bank accounts.

According to the ED, the case involves suspected misuse of cryptocurrency platforms for cross-border movement of funds outside the formal banking system. Preliminary findings suggest violation of foreign exchange regulations through unregulated digital asset channels linked to multiple entities under probe.

The agency said the entities were advertising instant cross-border transfers using cryptocurrencies, while not adhering to the Reserve Bank of India (RBI)-mandated norms such as purpose codes and Foreign Inward Remittance Certificates (FIRCs).

The ED said users were allowed to deposit rupees into company accounts, convert them into VDAs and route them across borders, while foreign funds were also brought into India through similar crypto-based mechanisms.

In some cases, funds from abroad were allegedly converted into VDAs and routed through India-based platforms before being credited to domestic bank accounts, the agency said.

The ED further said some transactions were routed through overseas entities controlled from India, while required banking compliance norms were allegedly bypassed.

In one case involving Mokshagna Technologies, the agency alleged that funds from US customers were converted into VDAs and routed to India-based platforms before being liquidated through OTC deals and distributed within India.

In another case involving Transak Technology India, the ED said company profits were allegedly converted into VDAs and transferred to a related entity in the US.

Carretx Technologies was found to be facilitating crypto transactions through its mobile application, enabling users to convert rupees into crypto and later withdraw funds into bank accounts, the agency said.

Further investigation is under progress, the agency said.