Published: October 30, 2026
StartupFeed Quick Take
- The ED crypto probe searched four premises in Bengaluru and Madhya Pradesh on October 27, 2026, over alleged FEMA breaches above Rs 4,940 Cr.
- Mudrex and Saber.money face claims above Rs 4,600 Cr. Instadapp and its platform Fluid face about $40 Mn, around Rs 380.6 Cr.
- The action follows a June case that froze about Rs 6 Cr, and points to wider scrutiny of crypto on-ramp and off-ramp services.
India’s Enforcement Directorate searched four premises in Bengaluru and Madhya Pradesh on October 27, alleging illegal cross-border crypto transfers of more than Rs 4,940 Cr.
The searches ran under Section 37 of FEMA, 1999. They covered three sites in Bengaluru and one in Madhya Pradesh. Four brands were named: Mudrex, Saber.money, Fluid and Instadapp.
The agency split the money into two cases. Mudrex and Saber.money carry alleged breaches above Rs 4,600 Cr. Instadapp and Fluid carry a separate claim of about $40 Mn, around Rs 380.6 Cr.
In June the agency froze about Rs 6 Cr in a similar crypto case. The figure it is chasing now is far larger.
What The ED Crypto Probe Found
The ED crypto probe centres on RPFAS Technologies Private Limited, a Bengaluru company. It runs both Mudrex and Saber.money. Complaints flagged large-scale FEMA breaches by the firm, the agency said.
The ED alleged the two platforms moved money across borders outside legal channels. It said the firm held no RBI approval for inward or outward remittances. Related entities registered abroad helped run the flow, even though the operation sat in Bengaluru.
The agency said the platforms offered on-ramp and off-ramp services, turning rupees, dollars and euros into crypto and back. Preliminary findings put the alleged breaches above Rs 4,600 Cr.
On how the service was sold, the agency was blunt.
“The entity is openly advertising instant money transfer across borders using cryptocurrencies.”
Enforcement Directorate, from its press release on the searches, October 29, 2026.
Instadapp And Fluid Face A Separate $40 Mn Claim
Instadapp is a decentralised finance protocol built on Ethereum. Its lending platform is called Fluid. The ED examined both in the second strand of the case.
The agency alleged the linked entities were set up in the United States, Singapore, the British Virgin Islands and Dubai. It said they were run from India all along. Some had no office or staff at their registered address.
The alleged breach here is about $40 Mn, which the ED pegged at around Rs 380.6 Cr. Investigators said overseas investor money was routed through foreign accounts, then brought into India.
How The Alleged Transfers Moved Money
The method was simple, the ED said. A user who wants to send money registers on the platform. Rupees then go into the company’s bank account.
The company buys virtual digital assets, mostly the stablecoin USDT. Those coins are sold on Indian crypto exchanges. Sale proceeds then reach the receiver, skipping India’s approved route for sending money abroad.
During the searches, officers recorded statements under FEMA, 1999.
The ED also flagged the stablecoins USDT and USDC, large over-the-counter deals, and payouts through foreign platforms Binance and Bybit. Under FEMA, anyone handling such transfers needs RBI approval. None of the platforms held it, the agency said.
Why India’s Crypto Founders Should Watch
This is the second such case in months. In June, the ED searched five Bengaluru-based platforms over similar cross-border claims, including Transak, Onramp.money and Onmeta. It froze about Rs 6 Cr in that action.
The agency has gone after crypto platforms under FEMA before. In 2021 it issued a notice to WazirX over transactions worth Rs 2,790 Cr. It also searched CoinSwitch Kuber in 2022 over similar concerns.
| Case | Date | Alleged amount |
|---|---|---|
| Mudrex, Saber.money, Instadapp | October 2026 | Rs 4,940 Cr+ |
| Five Bengaluru platforms | June 2026 | Rs 6 Cr frozen |
| CoinSwitch Kuber | 2022 | FEMA search |
| WazirX | 2021 | Rs 2,790 Cr |
Crypto sits in an odd place in India. It is not regulated, yet it is taxed. Gains attract 30%, and a 1% tax is cut at source on trades.
Last month, a parliamentary panel on finance tagged the asset class as high risk. It cited money laundering and trafficking worries. The pattern is now clear.
The ED has moved from chasing trades to chasing the rails that move money out. No charges have been filed, and the case is still open.
What this means for you: If you run an Indian crypto on-ramp, off-ramp or a DeFi protocol managed from India, the ED treats cross-border stablecoin flows as a FEMA matter. Check whether your rupee-to-stablecoin transfers have RBI approval, and keep records of every cross-border leg before the next round of ED notices.
StartupFeed Insight
In June the ED froze about Rs 6 Cr. This October the sum under its lens is more than Rs 4,940 Cr. The jump shows the agency is no longer chasing stray trades. It is going after the on-ramp and off-ramp rails that turn rupees into stablecoins and back. Founders running remittance-style crypto flows from India are the clear target. Expect more FEMA notices to such operators, and early RBI or FIU signals on stablecoin remittance, before FY27 ends in March 2027. Build the compliance file now, not after the notice lands.
By Avinash Mishra, Business Correspondent
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