ED searches Bengaluru crypto firms over Rs 2,500 crore cross-border transfers
The Enforcement Directorate said it searched six Bengaluru premises on 17 June 2026 over unauthorised cross-border transfers using virtual digital assets. The agency reported preliminary FEMA contraventions of more than Rs 2,500 crore and restraint of bank accounts holding about Rs 6 crore. Investigation was continuing with no arrests announced.
This page records what the cited court, tribunal and government records say happened. Findings belong to the court or authority that made them; this register adds none of its own. Names of private individuals are withheld unless a naming gate clears them.
How we verify →Searches completed and bank balances restrained; ED investigation into the alleged FEMA contraventions continues.
What happened
The Enforcement Directorate stated that its Bengaluru office conducted searches under Section 37 of FEMA on 17.06.2026 at six Bengaluru premises over alleged unauthorised cross-border transfers using virtual digital assets.
The Enforcement Directorate stated that none of the entities offering cross-border transfer through virtual assets were authorised by the RBI and they did not comply with purpose-code and Foreign Inward Remittance Certificate requirements.
The Enforcement Directorate stated that customers deposited rupees, funds were converted into stablecoins such as USDT, sold through exchanges and large OTC deals, and routed to recipients in India and abroad, including via related foreign entities.
What the record says
“Directorate of Enforcement (ED), Bengaluru Zonal Office has conducted searches under section 37 of FEMA, 1999 on 17.06.2026 at 6 premises in Bengaluru on allegation of unauthorized cross-border transfer of money by multiple entities using Virtual Digital Assets (VDAs).”
ED Press Release 19/06/2026, opening paragraph — read the full text
A peaceful economic act
Moving money across borders through consensual transfers harmed no complaining victim; the allegation is only missing RBI authorisation and paperwork for remittances.
What we could not confirm
Amounts and violations are preliminary ED allegations, not adjudicated findings; no case number or arrests were published.