India Enforcement Directorate Searches Mudrex and Instadapp

India’s Enforcement Directorate has conducted searches at premises linked to crypto platforms Mudrex and Instadapp as part of an ongoing investigation into alleged cross-border foreign exchange violations totaling more than ₹5,000 crore, equivalent to over $525 million, according to CryptoNews.

The agency’s Bengaluru Zonal Office executed the searches under Section 37 of the Foreign Exchange Management Act, 1999, targeting three locations in Bengaluru and one in Madhya Pradesh on Oct. 27, before releasing preliminary findings on Oct. 29.

Mudrex and Saber.money Remittance Probe

Investigators alleged that Bengaluru-based RPFAS Technologies Private Limited, which operates Mudrex and Saber.money, utilized cryptocurrencies such as USDT and USDC to execute unauthorized international transfers. The firm allegedly advertised instant international money transfers without obtaining authorization from the Reserve Bank of India.

According to the Enforcement Directorate, customer deposits were converted into stablecoins and traded across Indian exchanges, international platforms including Binance and Bybit, and over-the-counter desks. The preliminary estimate for unauthorized transfers and overseas balances involving Mudrex and Saber.money exceeded ₹4,600 crore.

Instadapp Singapore Fund Flows

A separate investigation focused on the Ethereum-based lending and borrowing protocol Instadapp, involving approximately $40 million in alleged foreign exchange violations. Investigators stated that while the protocol operated through a Delaware-registered entity, its founders and development team managed operations from India.

According to the agency, protocol revenue and investor funding were routed through multisignature wallets controlled from India and transferred to entities in the British Virgin Islands, Singapore, and Dubai. Fiat proceeds from stablecoin sales were allegedly brought back to India as payments for consultancy and software development fees.

Key facts

• India's Enforcement Directorate searched premises linked to Mudrex and Instadapp in an investigation exceeding $525 million.
• Searches were conducted on Oct. 27 under Section 37 of the Foreign Exchange Management Act, 1999.
• RPFAS Technologies Private Limited, operating Mudrex and Saber.money, faces preliminary estimates exceeding ₹4,600 crore.
• Instadapp faces separate allegations involving approximately $40 million in foreign exchange violations.
• Platforms including Binance, Bybit, Independent Reserve Singapore, and QCP Capital Singapore were named in the agency's account.