ED detects ₹2,500-crore FEMA violations in Bengaluru cross-border crypto transfers probe

Summary

Subscribed with another email? Logout and Login with that one. Unlock these with Subscription Published - June 19, 2026 11:41 pm IST - Bengaluru The searches were carried out on June 17 under Section 37 of FEMA. | Photo Credit: da-kuk The Directorate of Enforcement (ED) has detected alleged violations of the Foreign Exchange Management Act (FEMA) involving more than ₹2,500 crore after conducting searches on six premises in Bengaluru linked to cryptocurrency-based cross-border money transfers. The searches were carried out on June 17 under Section 37 of FEMA at the offices of Transak Technology India Pvt. According to the ED, the investigation was initiated following a complaint alleging large-scale FEMA violations by Bengaluru-based entities using Virtual Digital Assets (VDAs) for cross-border transactions. Preliminary findings indicate that several firms were facilitating international money transfers through cryptocurrencies without authorisation from the Reserve Bank of India (RBI). The ED stated that none of the entities under investigation were authorised by the RBI to undertake cross-border remittances. In the case of Mokshagna Technologies, the ED reportedly found that funds collected from customers in the U.S. were converted into crypto assets and transferred to Indian crypto trading platforms. The proceeds were then distributed to beneficiaries in India. The ED alleged that the operation was controlled by one person residing in the U.S. with support from family members in India.