The Enforcement Directorate (ED) has conducted searches at six locations in Bengaluru as part of an investigation into alleged unauthorised cross-border money transfers exceeding ₹2,500 crore through virtual digital assets (VDAs).

The searches were carried out on June 17 under Section 37 of the Foreign Exchange Management Act (FEMA) and targeted premises linked to five companies: Transak Technology India Pvt. Ltd., Carretx Technologies Pvt. Ltd., Mokshagna Technologies Pvt. Ltd., Buyhatke Internet Pvt. Ltd. and Abhibha Technologies Pvt. Ltd.

Firms allegedly enabled crypto-based fund transfers

According to the ED, the companies operated platforms and brands such as Transak, Carret, Xpat (formerly Remit2Any), Onramp.money and Onmeta. These platforms allegedly offered crypto-based on-ramp and off-ramp services that allowed users to convert Indian rupees into virtual digital assets, including stablecoins such as USDT, and vice versa for international transactions.

The agency alleged that these services facilitated cross-border fund transfers without obtaining the necessary authorisations from the Reserve Bank of India (RBI).

“ED, Bengaluru Zonal Office has conducted searches under Section 37 of FEMA, 1999, on allegations of unauthorised cross-border transfer of money by multiple entities using Virtual Digital Assets,” the agency said in a statement.

Evidence of shell entities and overseas routing

Investigators claimed the firms failed to comply with RBI-mandated requirements, including the use of prescribed purpose codes and submission of Foreign Inward Remittance Certificates.

During the investigation, officials reportedly uncovered evidence of large over-the-counter cryptocurrency transactions, the use of shell entities in tax havens and the routing of funds through foreign crypto platforms.

Bank accounts frozen

As part of the operation, the ED froze bank accounts linked to some of the entities under investigation.

According to the agency, restraint orders were issued on accounts holding approximately ₹6 crore. Officials said further examination of financial records and digital evidence is underway to determine the full extent of the alleged FEMA violations.

The investigation remains ongoing, and no charges have been announced at this stage.