India’s Enforcement Directorate (ED) has launched a major crackdown on fiat-to-crypto on-ramp and off-ramp platforms in Bengaluru, accusing them of operating unauthorized cross-border money transfer channels. The agency raided six premises linked to five companies this week under Section 37 of the Foreign Exchange Management Act (FEMA), 1999, freezing approximately ₹6 crore (about $700,000) in suspect bank accounts.
The targeted platforms are Transak Technology India, Carretx Technologies (Carret), Mokshagna Technologies (formerly Xpat, now Remit2Any), Buyhatke Internet (which runs Onramp.money), and Abhibha Technologies (Onmeta). According to the ED, these firms followed a common pattern: customers deposited rupees into company-controlled bank accounts, which were then used to buy virtual digital assets—primarily USDT stablecoins—and sent across borders via crypto platforms. The stablecoins were sold over the counter, and cash was paid out to recipients abroad, bypassing standard reporting requirements like purpose codes and Foreign Inward Remittance Certificates.
Transak is specifically accused of converting locally earned profits into crypto and funneling them to its U.S. affiliate, Transak Inc., while Carret allegedly ran OTC trades with overseas remittance apps. Mokshagna is under scrutiny for a scheme where U.S. customer funds were converted to crypto, moved to Indian exchanges, and paid to Indian recipients—coordinated by a person based in the United States.
The Bengaluru raids are part of a broader enforcement push. Just two days prior, the ED arrested a suspect in a ₹500-crore Ponzi scheme tied to the Korvio Coin token that targeted over 248,000 investors. On the same day, it filed a prosecution complaint in a Coinbase phishing operation involving Indian national Chirag Tomar, who is already serving a U.S. prison sentence for stealing more than $20 million via fake login pages.
Reports indicate the ED is investigating total crypto transfers valued at over $260 million in this case, making it one of India’s largest crypto-related probes to date. The crackdown aligns with India’s tightening regulatory stance: since 2023, virtual asset service providers have been brought under the Prevention of Money Laundering Act (PMLA), requiring registration with the Financial Intelligence Unit and compliance with anti-money laundering norms. This action signals that enforcement agencies will continue targeting fiat-crypto gateways as the easiest chokepoints for illicit flows.
