According to an ED press release issued on October 29, the investigation was initiated following complaints alleging large-scale FEMA violations by Bengaluru-based RPAS Technologies Private Limited, which operates the platforms Mudrex and Saber.money.
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Officials of the Directorate of Enforcement (ED) on Thursday conducted searches at three premises in Bengaluru and one in Madhya Pradesh in connection with an investigation into alleged violations of the Foreign Exchange Management Act (FEMA) involving unauthorised cross-border money transfers through cryptocurrencies, particularly stablecoins.
The searches were conducted by the ED’s Bengaluru Zonal Office on October 27 under Section 37 of FEMA. The investigation concerns entities associated with cryptocurrency platforms Mudrex and Instadapp, which allegedly facilitated cross-border financial transactions by using virtual digital assets (VDAs) to bypass authorised banking channels.
According to an ED press release issued on October 29, the investigation was initiated following complaints alleging large-scale FEMA violations by Bengaluru-based RPAS Technologies Private Limited, which operates the platforms Mudrex and Saber.money.
The agency said its preliminary findings revealed the alleged circumvention of FEMA regulations through an unauthorised cross-border payment system using crypto tokens, particularly USDT/USDC stablecoins. The entities allegedly advertised instant international money transfers through cryptocurrencies without the required authorisation from the Reserve Bank of India (RBI).
The platforms reportedly offered services to buy, sell, and swap cryptocurrencies, as well as convert fiat currency into crypto assets and back, facilitating international transfers.
The ED said its investigation had identified large-volume over-the-counter (OTC) deals involving shell entities, particularly those incorporated in Canada, Lithuania, the United States and other jurisdictions. These entities allegedly operated foreign-based cryptocurrency trading platforms to facilitate unauthorised cross-border transfers.
The agency also alleged that the entities used foreign-based cryptocurrency platforms to purchase or sell foreign-based crypto assets and settle transactions through Indian bank accounts, in violation of FEMA provisions. It further alleged that expenses in foreign countries were being paid using cryptocurrencies in contravention of the law.
The ED said its preliminary findings indicated that unauthorised cross-border transfers and crypto balances held on foreign platforms amounted to more than ₹4,600 crore. The investigation is ongoing.
Published – October 30, 2026 12:06 am IST
