India’s Enforcement
Directorate (ED) is investigating alleged cryptocurrency-linked cross-border
transactions worth around $585 million (₹5,000
crore). The case involves Mudrex, Saber.money and decentralised finance
protocol Instadapp.
On 27 October, the
agency searched four premises, including three in Bengaluru and one in Madhya
Pradesh, under the Foreign Exchange Management Act.
London’s trading industry is coming home!
The operation follows
an earlier ED
investigation into CoinSwitch Kuber . In August 2022, the agency searched
premises linked to the crypto exchange over suspected violations of India’s
foreign exchange laws.
Binance, Bybit Named in $538M India
Crypto Probe
The latest probe
centres on RPFAS Technologies, which operates Mudrex and Saber.money. The ED
alleges that the company facilitated overseas transfers without authorisation
from the Reserve Bank of India.
Customers allegedly deposited fiat currency
that was converted into stablecoins such as USDT and sold through crypto
exchanges to transfer funds outside official banking channels.
The agency also
identified overseas entities in the US, Canada and Lithuania, and named Binance
and Bybit among the foreign exchanges involved in the transactions under
investigation. It estimates the alleged FEMA violations linked to RPFAS
Technologies at $538 million (₹4,600
crore).
BREAKING: 🇮🇳 ED searches 3 locations over alleged ₹5,000 crore crypto-linked illegal cross-border transactions involving Binance and Bybit. https://t.co/Jp2zo78Dkg
— Crypto India (@CryptooIndia) October 29, 2026
Instadapp Faces $40M India Foreign
Exchange Probe
The investigation also
covers Instadapp, which operates as Fluid. The ED alleges that founder Sowmay
Jain managed the protocol from India, although the business was presented as a
US-based operation.
According to the
agency, stablecoin revenues passed through entities in the British Virgin
Islands, Singapore and Dubai before being converted into fiat currency and
transferred to India as payments for what it described as “bogus software
development and consultancy fees”. The alleged FEMA violations involving
Instadapp are estimated at $40 million (₹380
crore).
India’s Crypto Crackdown Includes Raids
and Fines
India has also taken
action against offshore crypto exchanges over anti- money laundering compliance.
In December 2023, authorities
moved to block access to nine platforms , including Binance. Binance and
KuCoin registered with India’s Financial Intelligence Unit in 2024, with Binance
subsequently fined ₹188.2
million for alleged anti-money laundering violations.
Separately, tax
authorities raided six Indian crypto exchanges in January 2022, uncovering
approximately $9.4 million in unpaid taxes, according to reports at the time.
The allegations in the
current case have not been established as findings of guilt.
This article was written by Tareq Sikder at www.financemagnates.com.
