ED freezes Rs 6 crore in Bengaluru crypto-linked FEMA probe

The Enforcement Directorate (ED) has frozen bank accounts containing around Rs 6 crore following searches at multiple premises linked to Bengaluru-based companies in connection with an alleged foreign exchange violation involving Virtual Digital Assets (VDAs).

According to an official statement, the ED’s Bengaluru Zonal Office conducted searches on June 17 under Section 37 of the Foreign Exchange Management Act (FEMA), 1999, at six locations associated with five companies.

Five companies under scanner

The searches were carried out at premises linked to M/s Transak Technology India Private Limited, M/s Carretx Technologies Private Limited, M/s Mokshagna Technologies Private Limited, M/s Buyhatke Internet Pvt. Ltd. and M/s Abhibha Technologies Private Limited.

The action follows allegations that these entities facilitated unauthorised cross-border transfer of funds through Virtual Digital Assets, commonly known as cryptocurrencies and other blockchain-based digital assets.

Accounts holding Rs 6 crore frozen

During the operation, ED officials issued restraint orders on several bank accounts allegedly used to carry out the transactions under investigation.

According to the agency, the accounts collectively held approximately Rs 6 crore, which has now been frozen pending further investigation.

The agency is examining the nature of the transactions and whether foreign exchange regulations were violated through the use of digital asset platforms and related financial channels.

Focus on cross-border digital transactions

The case highlights increasing regulatory scrutiny of digital asset transactions, particularly those involving cross-border movement of funds.

Authorities have been closely monitoring the use of Virtual Digital Assets amid concerns that some platforms may be used to bypass established foreign exchange and financial compliance mechanisms.

The ED has not announced any arrests in the case so far. Further investigation is underway to determine the extent of the alleged violations and the role of the entities involved.