ED Probes Unauthorised Cross-Border Crypto Transfers Worth ₹4,940 Cr

ED Raids Over Crypto Transfers

The Enforcement Directorate has opened investigations into alleged foreign exchange violations involving crypto platforms Mudrex and Saber.money, along with the decentralised finance protocol Instadapp and its linked platform Fluid. The agency’s Bengaluru zonal office carried out searches on October 27 at three locations in Bengaluru and one in Madhya Pradesh, acting under Section 37 of the Foreign Exchange Management Act, 1999. The alleged unauthorised cross-border transfers are valued at more than ₹4,940 crore.

According to the ED, the Mudrex and Saber.money operations account for alleged FEMA contraventions exceeding ₹4,600 crore, while the Instadapp and Fluid matter involves roughly $40 million, or about ₹380.6 crore. The agency has identified Bengaluru-based RPFAS Technologies Pvt Ltd, which runs Mudrex and Saber.money, among the entities under scrutiny. It alleged the platform openly advertises instant cross-border money transfers using cryptocurrencies despite lacking RBI authorisation. The probe also points to the use of shell entities in tax-haven jurisdictions, large over-the-counter trades, and foreign payouts routed through platforms such as Binance and Bybit.

Why It Matters For Businesses

The investigations focus on stablecoins like USDT and USDC being used to move funds across borders outside authorised remittance channels. The ED alleged these platforms offered on-ramp and off-ramp services, letting users convert INR, USD and EUR into digital assets and withdraw proceeds to bank accounts. In the Instadapp case, the agency said entities were incorporated in the US, Singapore, the British Virgin Islands and Dubai but managed from India, with some lacking physical offices or staff at registered addresses. Funds from overseas investors were allegedly routed through foreign bank accounts and then sent to India for expenses. For compliance teams, the action signals continued scrutiny of offshore structures controlled domes…