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ED examines alleged crypto transfer routes
India's Enforcement Directorate searched four premises on 27 October as it investigates crypto-linked cross-border transactions estimated at $585 million (₹5,000 crore). Three of the sites were in Bengaluru and the fourth was in Madhya Pradesh. The searches were carried out under the Foreign Exchange Management Act.
The case follows the agency's earlier inquiry into CoinSwitch Kuber. In August 2022, ED investigators searched locations associated with the exchange amid suspicions of breaches of India's foreign exchange rules.
Stablecoin flows connect three operations
RPFAS Technologies, which operates Mudrex and Saber.money, is central to this strand. ED alleges it enabled overseas transfers without Reserve Bank of India authorisation. The agency says customers' fiat deposits were converted into stablecoins including USDT, then sold through crypto exchanges to move funds beyond formal banking channels.
It names entities in Lithuania, Canada and the US, and includes Binance and Bybit among exchanges under review. ED estimates alleged FEMA breaches tied to RPFAS at $538 million (₹4,600 crore).
Instadapp, which operates as Fluid, is also being investigated. ED alleges founder Sowmay Jain managed the protocol from India although the operation was presented as US-based.
The agency says proceeds passed through entities in Dubai, Singapore and the British Virgin Islands, were converted to fiat and sent to India as purported software development and consultancy fees. It puts alleged FEMA violations involving Instadapp at $40 million (₹380 crore). Finance Magnates reported the allegations, which have not been established as findings of guilt.
Earlier actions frame current scrutiny
| Action | Figures and dates |
|---|---|
| Transactions under investigation | $585 million (₹5,000 crore) |
| Alleged RPFAS FEMA breaches | $538 million (₹4,600 crore) |
| Alleged Instadapp FEMA breaches | $40 million (₹380 crore) |
| Restrictions on offshore platforms | Binance was among nine platforms for which authorities sought to block access in December 2023. |
| Financial Intelligence Unit registration and penalty | Binance and KuCoin registered in 2024. Binance was subsequently fined ₹188.2 million over alleged anti-money laundering violations. |
| Tax investigations | In January 2022, authorities raided six Indian crypto exchanges. Reports at the time put unpaid taxes at approximately $9.4 million. |
What an operations team should check
Teams supporting fiat-to-stablecoin conversion or exchange transfers should check whether records can connect customer deposits, token conversions, exchange sales and onward remittances across the entities involved. Can those entries be reconciled with the payment and accounting records held by each relevant business, and who is responsible for retrieving them if requested?
The agency's account does not specify which platforms' interfaces, custody arrangements or data are in scope, or what remediation may be required. Operators should establish what transaction records and jurisdictions are relevant to their own activity, and whether existing controls capture the entity hand-offs described in the allegations.
