The Enforcement Directorate (ED) has launched investigations into alleged violations of the Foreign Exchange Management Act (FEMA) involving crypto platforms Mudrex and Saber.money, as well as decentralised finance (DeFi) protocol Instadapp and its associated platform Fluid, over alleged unauthorised cross-border fund transfers worth more than ₹4,940 Cr.

The agency said its Bengaluru Zonal Office conducted searches at three premises in Bengaluru and one in Madhya Pradesh on October 27 under Section 37 of FEMA, 1999.

The investigations centre on the alleged use of cryptocurrencies, particularly stablecoins such as USDT and USDC, to facilitate cross-border money transfers outside authorised channels.

The ED said its preliminary investigation into the Mudrex and Saber.money operations indicated alleged FEMA violations exceeding ₹4,600 Cr. Separately, the agency alleged contraventions amounting to approximately $40 Mn (around ₹380.6 Cr) in the Instadapp/Fluid case.

The Enforcement Directorate (ED) has searched four premises in Bengaluru and Madhya Pradesh as part of an investigation into alleged unauthorised cross-border financial transactions involving cryptocurrency worth more than ₹5,000 Cr.

The agency’s Bengaluru Zonal Office conducted the searches earlier this week on October 27 under the FEMA regulations. In a post on X, the ED said its probe had uncovered the alleged use of shell entities in tax-haven jurisdictions, large over-the-counter (OTC) transactions and foreign payouts through cryptocurrency platforms such as Binance and Bybit. <

It has identified Bengaluru-based RPFAS Technologies Pvt Ltd, which operates  platforms Mudrex and Saber.money, among the entities which allegedly use crypto currencies for unauthorised cross border transactions and trading. 

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