Mudrex, Instadapp face ED searches in $525 million crypto probe

India’s Enforcement Directorate has searched premises linked to Mudrex and Instadapp in an investigation into alleged cross-border crypto transactions involving more than ₹5,000 crore or above $525 million.

The Enforcement Directorate said in its Oct. 29 press release that its Bengaluru Zonal Office conducted the searches under Section 37 of the Foreign Exchange Management Act, 1999. The document lists three premises in Bengaluru and one in Madhya Pradesh.

In its accompanying X announcement, the agency put the amount involved at more than ₹5,000 crore. Its release gave separate preliminary estimates for the activities linked to Mudrex and Saber.money and those involving the Instadapp decentralized finance business.

ED Bengaluru has conducted searches under FEMA on 27.10.2026 at 3 locations in Bengaluru & Madhya Pradesh over unauthorized cross border financial transactions using cryptocurrency involving more than ₹5,000 Crore (Approx.). The probe exposed use of shell entities in tax haven… pic.twitter.com/zcYFzzaQbO

— ED (@dir_ed) October 29, 2026

The release did not announce arrests, an adjudicated penalty or a customer withdrawal deadline. Binance and Bybit were named as platforms used for transactions and holdings; the document did not announce penalties against either exchange.

Investigators described their findings as preliminary and said the Instadapp investigation remained underway.

Mudrex and Saber.money face remittance allegations

Complaints alleging large-scale foreign exchange violations prompted the investigation into Bengaluru-based RPFAS Technologies Private Limited, which operates Mudrex and Saber.money, the agency said.

Investigators alleged that the business used cryptocurrencies, particularly USDT and USDC stablecoins, to move money across borders outside authorized remittance channels. The release said the entity advertised instant international transfers despite lacking authorization from the Reserve Bank of India for those services.

According to the agency’s account, customers registered with the platforms and deposited money into company bank accounts. Funds were then used to purchase virtual digital assets, especially USDT, which were sold on Indian crypto exchanges before the proceeds were paid to recipients.

Screenshots reproduced in the release show Saber.money advertising stablecoin payment infrastructure for Asia, instant on-ramps and off-ramps, and transfers between currencies. One advertisement compared a traditional banking transfer taking 30 hours with a Saber transfer taking 0.2 seconds.

The ED alleged that related businesses registered overseas were controlled and operated from India. Investigators cited large over-the-counter transactions and entities incorporated in Canada, Lithuania and the United States, alongside crypto activity on foreign platforms including Binance and Bybit.

Foreign-platform crypto holdings and payments for expenses abroad formed part of the alleged violations, the release said. Its preliminary estimate exceeded ₹4,600 crore, equivalent to ₹46 billion, covering unauthorized cross-border transfers and unauthorized crypto balances held overseas.

On its public compliance page, Mudrex identifies RPFAS Technologies as registered with India’s Financial Intelligence Unit and displays registration number VA00031079. The page describes its registration under the Prevention of Money Laundering Act; it does not present a response to the Oct. 29 allegations.

Instadapp’s alleged fund flows ran through Singapore

A separate section of the release concerns Instadapp, the Ethereum-based lending, borrowing and token-swapping protocol associated with Fluid. The ED said searches covered two premises in Bengaluru and one in Madhya Pradesh in that investigation.

Although the business was presented as operated by a Delaware-registered company, investigators alleged that its founder and development team worked from India. The release named Sowmay Jain as one of the founders managing the operation from the country.

The agency identified entities in Delaware, the British Virgin Islands, Singapore and Dubai. Its list included Instadapp Labs Inc. in Delaware, Interop Labs and Summerspeak in the British Virgin Islands, Upsurge Labs and Bhindi Labs in Singapore, and Pebble Labs Technology in Dubai. It alleged that the overseas companies lacked offices or employees at their registered locations and were used to route income earned abroad to India.

Protocol revenue and investor funding were received as stablecoins in multisignature wallets belonging to Interop Labs Ltd. in the British Virgin Islands, according to investigators. The ED alleged that people based in India controlled the wallets.

After the stablecoins were sold through Independent Reserve Singapore and QCP Capital Singapore, fiat proceeds entered bank accounts belonging to Singapore group companies Upsurge Labs and Bhindi Labs, the release said.

Investigators alleged that subsequent remittances to India were presented as payments for “bogus software development and consultancy fees.” Singapore-issued prepaid bank cards were used to cover expenses in India, while money from Singapore accounts was routed to founders’ bank accounts in Dubai, according to the agency.

The preliminary estimate for alleged Instadapp-related FEMA violations was approximately $40 million. The release did not publish transaction hashes, account statements, or a transaction-by-transaction calculation supporting that estimate.

India’s crypto oversight has targeted OTC records

India’s Financial Intelligence Unit had already sought large OTC transaction records from at least three major exchanges in June, according to reporting based on The Economic Times. The request covered trades above $10,000 and records dating back to January 2026, including beneficial ownership information.

In a separate June investigation, the ED searched six Bengaluru premises and alleged more than ₹2,500 crore in unauthorized crypto-linked cross-border transfers. As previously reported by crypto.news, the earlier crypto remittance searches involved five payment businesses, including Transak Technology India and Carretx Technologies.

September brought notices against offshore platforms, with FIU-IND naming 15 service providers, including Weex, Blofin, WOO X and WhiteBIT. The watchdog sought takedown action against their applications and URLs over alleged noncompliance with India’s anti-money-laundering requirements.