India’s Enforcement Directorate has searched six premises in Bengaluru as part of a foreign-exchange probe into alleged crypto-linked transfers worth more than ₹2,500 crore, or about $265 million.
The June 17 searches covered premises linked to Transak Technology India, Carretx Technologies, Mokshagna Technologies, Buyhatke Internet and Abhibha Technologies. The companies operate or are linked to brands including Transak, Carret, Xpat, Onramp.money and Onmeta.
The ED alleged the entities used crypto on-ramp and off-ramp services to move value across borders without Reserve Bank of India authorisation. The agency also restrained bank accounts holding around ₹6 crore, worth roughly $635,000.
Stablecoins Sit At The Center Of The Alleged Route
The case focuses on the use of virtual digital assets to convert fiat into crypto, move value between jurisdictions and convert the assets back into local currency. ED-linked reporting identified stablecoins such as USDT as part of the alleged transfer route, alongside crypto trading platforms and over-the-counter transactions.
The alleged structure allowed users to deposit money with the companies, convert it into crypto assets and route the value through domestic or foreign crypto platforms before final payout. The ED also alleged the use of shell entities in tax-haven jurisdictions and foreign crypto platforms to support the flows.
The companies were accused of operating outside India’s foreign-exchange framework, including requirements tied to RBI authorisation, purpose codes and Foreign Inward Remittance Certificates. The probe is being handled under the Foreign Exchange Management Act rather than as a securities-market action.
India Targets Crypto Payment Rails
The Bengaluru searches put India into the same regulatory fight playing out across other major markets: whether stablecoins and crypto payment rails can be used for cross-border settlement without moving through licensed foreign-exchange channels.
Brazil recently moved to shut crypto out of regulated cross-border payment settlement under its eFX framework, while U.S. regulators are pushing stablecoin issuers toward bank-style customer identification rules. India’s action is narrower and enforcement-led, but the target is similar: high-speed crypto settlement that can bypass traditional FX controls.
The confirmed public status is six Bengaluru searches, five named corporate entities, alleged FEMA violations above ₹2,500 crore, or about $265 million, roughly $635,000 restrained in bank accounts and a continuing probe into crypto-linked cross-border transfers.
