ED Freezes ₹6 Cr in Raids on Five Crypto Transfer Platforms

Under India's Foreign Exchange Management Act, only banks and authorised dealers may process cross-border remittances. By routing funds through virtual digital assets, the five platforms bypassed these requirements and avoided reporting obligations such as purpose codes, the ED said. The method created an off-channel payment system that the agency called a circumvention of the official channels.

The modus operandi varied by platform. The agency detailed Onmeta's structure. Onmeta collected fiat currency from US-based customers seeking to send remittances to India. It converted the dollars into VDAs. The digital assets were then transferred to Indian crypto trading platforms. The proceeds from the sale of those cryptocurrencies were deposited into bank accounts of the parent company, Mokshagna Technologies Pvt. Ltd., and then distributed to end customers in India.

“The main person is residing in USA and controlling the entire operation with the help of his family members in India,” the ED said.

The other platforms employed similar methods to route money through VDAs, bypassing authorised banking channels and regulatory reporting requirements.

India's crypto sector operates without a dedicated regulatory framework. The government imposes a 30% capital gains tax and a 1% tax deducted at source on every transaction. The parliamentary standing committee on finance last month labelled the asset class high risk, citing money laundering, trafficking, and radicalisation risks.

The ED's action marks one of the most direct enforcement steps against unlicensed cross-border crypto transfers. The frozen accounts, used by the entities for transfers, hold customer funds. The agency said the investigation remains active.