India’s Enforcement Directorate (ED) has launched a major investigation into several Bengaluru-based crypto payment companies over allegations that they helped move money overseas without proper authorization under foreign exchange rules.
In its X post, the agency mentioned that it conducted searches on June 17 at six different places and froze bank accounts with about ₹6 crore funds. The officials have said that the money was found to be related to alleged illegal cross-border operations concerning virtual digital assets (VDAs) like stablecoins.
The case revolves around a mechanism where the individuals were able to convert Indian rupee into cryptocurrency and then send it overseas before converting it into fiat currency again. Through this scam, the suspects were able to avoid using the regular banking and remittance routes available in India. In the view of the ED, the overall value of such transactions exceeds ₹2,500 crore ($265 million).
This comes amid the fact that India has been very serious about stopping any form of criminal activities in the digital assets industry in the country.
India investigates crypto firms offering fast fiat-to-crypto conversions
The companies being investigated in this case include Transak Technology India, Carretx Technologies, Mokshagna Technologies (earlier known as Xpat/Remit2Any), Buyhatke Internet (Onramp.money), and Abhibha Technologies (Onmeta).
According to investigators, these firms provided their customers with “on-ramps” and “off-ramps” that facilitated the transition between fiat currency and cryptocurrencies within minutes.
However, according to authorities, despite the advantages for users, it was essentially the absence of important safeguards that is stipulated by Indian foreign exchange laws. None of the firms listed has been licensed by the Reserve Bank of India to perform regulated cross-border remittances.
As for the procedure of transactions, there is quite a uniform algorithm that can be seen on the websites of all of the platforms. Users deposit rupees into the accounts that belong to the firms mentioned above and are used to purchase crypto-assets, mostly stable coins such as USDT.
Afterward, the assets were transferred to the wallets, sold in over-the-counter mode and converted into rupees, which were sent overseas or in India.
ED investigates alleged crypto routing of U.S. and India funds via exchanges
Some firms face specific allegations. Transak is accused of converting operational revenue into crypto and sending it to its U.S. affiliate using digital assets instead of banks. Carret is alleged to have handled both retail trading and OTC transfers tied to overseas remittance flows.
Another firm, Mokshagna Technologies, is accused of processing funds originating in the U.S. that were converted into crypto and routed through Indian exchanges.
The ED also suggested that parts of the operation may have been coordinated across borders, with individuals in the U.S. working alongside contacts in India to manage fund flows.
This case is not happening in isolation. The agency has stepped up enforcement against crypto-linked financial activity in recent weeks. Just days earlier, it investigated a ₹500 crore alleged Ponzi scheme involving the Korvio Coin token, which reportedly affected more than 240,000 investors. It also filed a separate case tied to a Coinbase phishing operation that allegedly stole tens of crores through fake websites.
What stands out in the current probe is how familiar the model has become: fast crypto conversions, OTC trading desks, offshore entities, and promotional messaging around “instant global transfers.” For regulators, that combination raises concerns about how easily digital assets can blur the line between innovation and unregulated financial flows.
The ED has stressed that the investigation is still at an early stage and no final wrongdoing has been proven. But the scale of the allegations, combined with India’s increasingly active enforcement stance, suggests the scrutiny on crypto payment firms is unlikely to ease anytime soon.
