ED Searches Four Locations Over Alleged Rs 4,940 Crore Crypto-Related FEMA Violations
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Khushi Jain
- October 30, 2026
India’s Enforcement Directorate (ED) conducted searches at four premises in Bengaluru and Madhya Pradesh on October 27, 2026, as part of an investigation into alleged unauthorised cross-border cryptocurrency transactions involving more than Rs 4,940 crore.
The searches were carried out under Section 37 of the Foreign Exchange Management Act (FEMA), 1999, covering three locations in Bengaluru and one in Madhya Pradesh, according to a report published by Exchange4media.
The investigation names four cryptocurrency platforms: Mudrex, Saber.money, Instadapp and Fluid.
According to the agency, Mudrex and Saber.money are linked to alleged FEMA violations exceeding Rs 4,600 crore. A separate investigation involving Instadapp and Fluid concerns transactions worth approximately $40 million, equivalent to around Rs 380.6 crore.
The latest action follows an earlier cryptocurrency-related investigation in June 2026, when the ED froze approximately Rs 6 crore in connection with suspected unauthorised cross-border remittances.
ED Investigates Mudrex and Saber.money Over Alleged Rs 4,600 Crore FEMA Violations
The investigation centres on RPFAS Technologies Private Limited, a Bengaluru-based company identified in the source material as operating Mudrex and Saber.money.
According to the ED, complaints against the company raised concerns about large-scale violations of foreign exchange regulations involving cross-border financial transactions.
The agency alleged that the platforms facilitated international fund transfers using cryptocurrency outside authorised remittance channels.
Investigators also claimed that RPFAS Technologies Private Limited did not have approval from the Reserve Bank of India (RBI) to conduct inward or outward remittances.
The ED further alleged that foreign-registered entities associated with the company supported these transactions, while the operations were managed from Bengaluru.
The platforms reportedly provided cryptocurrency on-ramp and off-ramp services, allowing users to convert traditional currencies, including Indian rupees, US dollars and euros, into cryptocurrencies and vice versa.
Preliminary findings placed the alleged FEMA violations involving Mudrex and Saber.money at more than Rs 4,600 crore.
In its October 29, 2026, press release, the Enforcement Directorate stated:
The agency is examining whether the transactions complied with India’s foreign exchange regulations. The allegations have not been established as proven violations.
Instadapp and Fluid Face Separate Investigation Involving $40 Million
The Enforcement Directorate is also investigating Instadapp, a decentralised finance (DeFi) protocol built on Ethereum, and its lending platform Fluid.
The agency alleged that entities connected to these platforms were incorporated in overseas jurisdictions, including the United States, Singapore, the British Virgin Islands and Dubai.
According to investigators, the entities were managed from India despite being registered abroad.
The ED also claimed that some of these entities did not maintain physical offices or employees at their registered addresses.
The investigation concerns alleged FEMA violations involving approximately $40 million, equivalent to around Rs 380.6 crore.
Investigators alleged that funds received from overseas investors were routed through foreign accounts before being transferred to India.
The agency is examining these transactions as part of its investigation into possible foreign exchange violations.
ED’s Earlier Cryptocurrency Investigation Led to Rs 6 Crore Freeze
The October searches follow an earlier cryptocurrency-related investigation conducted by the Enforcement Directorate in June 2026.
During that investigation, the agency froze approximately Rs 6 crore in connection with suspected unauthorised cross-border cryptocurrency remittances.
According to a Free Press Journal report, the earlier action concerned a crypto-linked cross-border remittance network.
The latest investigation involves substantially larger transaction amounts, with alleged violations exceeding Rs 4,940 crore across the two cases described in the source material.
The ED’s examination of Mudrex, Saber.money, Instadapp and Fluid focuses on cross-border fund movements and compliance with India’s foreign exchange regulations.
The allegations remain under investigation. The available source material does not establish that the companies or individuals involved have been found guilty of violating FEMA.
Frequently Asked Questions (FAQs)
1. Why did the ED conduct searches involving cryptocurrency platforms?
The ED conducted searches over alleged unauthorised cross-border cryptocurrency transactions and suspected FEMA violations exceeding Rs 4,940 crore.
2. Which cryptocurrency platforms are involved in the ED investigation?
The investigation involves Mudrex, Saber.money, Instadapp and Fluid.
3. How much money is involved in the alleged Mudrex and Saber.money violations?
According to the ED, the alleged FEMA violations involving Mudrex and Saber.money exceed Rs 4,600 crore.
4. What allegations have been made against Instadapp and Fluid?
The ED is investigating alleged foreign exchange violations involving approximately $40 million, or around Rs 380.6 crore, linked to overseas entities and cross-border fund transfers.
5. Under which law did the ED conduct the searches?
The searches were conducted under Section 37 of the Foreign Exchange Management Act (FEMA), 1999.
