India's Enforcement Directorate Cracks Down on Crypto Firms for ₹2,500 Crore Cross-Border Violations

The Enforcement Directorate has launched an investigation into several Bengaluru-based crypto firms for alleged foreign exchange violations involving more than ₹2,500 crore in cross-border transfers.

The agency conducted searches at six locations linked to five companies operating crypto payment and remittance platforms. The companies under investigation are Transak Technology India Pvt. Ltd., Carretx Technologies Pvt. Ltd., Mokshagna Technologies Pvt. Ltd., Buyhatke Internet Pvt. Ltd., and Abhibha Technologies Pvt. Ltd.

The ED alleged that the firms offered on-ramp and off-ramp services, allowing customers to convert traditional currencies into cryptocurrencies and stablecoins, and then sell them on crypto exchanges for a profit. The agency claimed that some recipients of these transactions were able to claim Tax Deducted at Source (TDS) benefits.

The investigation has uncovered what the ED described as a broader network involving foreign crypto platforms, shell companies incorporated in tax havens, and large volume over-the-counter crypto transactions. Officials alleged that some firms used related entities incorporated abroad but controlled from India to bypass mandatory compliance requirements.