India's Enforcement Directorate Probes Crypto Platforms Over ₹4,940 Cr in Cross-Border Transfers
India's Enforcement Directorate has launched an investigation into several cryptocurrency platforms, including Mudrex and Instadapp, for alleged violations of the Foreign Exchange Management Act.
The Enforcement Directorate (ED) of India has initiated a probe into multiple crypto-related entities, citing alleged unauthorised cross-border transactions totaling more than ₹4,940 crore. The investigation centers on Mudrex, Saber.money, and the decentralized finance (DeFi) protocol Instadapp, along with its associated platform Fluid.
On October 27, the agency’s Bengaluru office executed searches at premises in Bengaluru and Madhya Pradesh under the Foreign Exchange Management Act (FEMA), 1999. The ED alleges that these platforms facilitated international remittances using stablecoins like USDT and USDC, effectively bypassing authorized banking channels regulated by the Reserve Bank of India (RBI).
The regulator claims that Mudrex and Saber.money, operated by RPFAS Technologies, advertised instant international money transfers without necessary regulatory approval. Simultaneously, the probe into Instadapp focuses on the use of foreign-registered entities—managed from India—to route funds into the country, allegedly circumventing domestic financial oversight.
This development follows a similar enforcement action in June, when the agency targeted platforms such as Transak and Onramp.money for comparable FEMA violations. As Indian authorities continue to scrutinize the digital asset sector for risks including money laundering and tax evasion, these cases underscore the ongoing tension between the country's growing DeFi ecosystem and its strict capital control regulations.