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ED raids five Bengaluru crypto platforms over FEMA breach
Indian Express, Economic Times, NDTV··21 Jun
The Enforcement Directorate searched six Bengaluru premises on June 17 targeting Transak, Carret, Xpat, Onramp.money, and Onmeta. Preliminary findings cite over Rs 2,500 crore in unauthorised cross-border transfers using virtual digital assets. The agency froze about Rs 6 crore in linked bank accounts. Firms allegedly advertised instant international transfers without RBI authorisation. More details may follow soon.
Prism
What It Means For You
- Five Bengaluru fintech brands advertised instant cross-border transfers without RBI authorisation.
- Frozen bank balances of about Rs 6 crore are linked to the alleged network.
- Users of crypto on-ramp and off-ramp apps may face scrutiny if platforms lacked licences.
What's Happening
- ED searched six premises on June 17 targeting Transak, Carret, Xpat, Onramp.money, and Onmeta.
- Preliminary findings cite over Rs 2,500 crore in unauthorised cross-border transfers via VDAs.
- Investigators allege OTC crypto deals and shell entities in tax havens moved funds outside banking channels.
Crypto Off-Ramps Under Probe
- On-ramp services convert rupees to crypto; off-ramps liquidate assets back to Indian bank accounts.
- Entities allegedly skipped RBI purpose codes and Foreign Inward Remittance Certificates.
- Transak's US affiliate allegedly routed profits through crypto wallets without approval.
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