Overview
- The Enforcement Directorate carried out coordinated searches at six Bengaluru premises on June 17 and opened a FEMA compliance probe into crypto and fintech remittance services.
- Preliminary ED findings allege unauthorised cross‑border remittances exceeding ₹2,500 crore routed through virtual digital assets, especially stablecoins such as USDT.
- Restraint orders were placed during the searches on bank accounts holding about ₹6 crore linked to the firms, and investigators have begun detailed transaction tracing.
- The agency describes a common on‑ramp/off‑ramp method: customer fiat is taken into company accounts, converted to VDAs, sold on Indian exchanges or OTC desks, and proceeds are moved to recipients or foreign affiliates.
- The probe is being pursued under FEMA rather than the money‑laundering law and could pressure banks, payment partners and remittance startups as regulators and forensic teams continue legal action and tracing.