India’s Enforcement Directorate has executed coordinated raids on five Bengaluru-based cryptocurrency firms suspected of facilitating unauthorized cross-border transfers exceeding $300 million. The June 17 operation targeted companies allegedly converting Indian rupees into stablecoins like USDT to move capital overseas without Reserve Bank of India approval.
The investigation focuses on Transak Technology, Carretx Technologies, Mokshagna Technologies, Buyhatke Internet, and Abhibha Technologies. Authorities froze approximately $720,000 in bank assets linked to these entities. Investigators allege the firms utilized over-the-counter trading and shell companies to bypass financial controls.
Transak faces specific accusations of routing profits through a U.S. affiliate to siphon earnings offshore. Conversely, Mokshagna allegedly managed funds for U.S. customers through Indian channels, creating complex jurisdictional entanglements. These actions are being pursued under the Foreign Exchange Management Act rather than money laundering statutes, signaling a regulatory focus on unauthorized remittance operations.
This enforcement action serves as a direct warning to crypto payment providers operating in India. While retail token prices remain unaffected, named firms now face significant reputational risk and potential friction with institutional banking partners. The raids underscore New Delhi's intensifying scrutiny of stablecoins as tools for unregulated cross-border value transfer.