ED raids uncover ₹4,600 crore in crypto FEMA violations
6.9 Regulation ED raided Bengaluru and Madhya Pradesh premises over ₹4,600 crore in alleged unauthorized crypto transfers involving Mudrex, Saber.money, Instadapp, and Fluid, citing FEMA violations and use of foreign exchanges.
India's Enforcement Directorate (ED) recently conducted searches at multiple locations in Bengaluru and Madhya Pradesh. These actions are part of an investigation into alleged foreign exchange violations totaling over ₹4,600 crore (approximately $585 million) through unauthorized cross-border cryptocurrency transactions. The probe focuses on entities such as Mudrex, Saber.money, Instadapp, and Fluid, with RPFAS Technologies Private Limited identified as a key operator. According to the ED, these platforms facilitated overseas transfers without Reserve Bank of India approval by converting fiat deposits into stablecoins and routing funds through foreign exchanges like Binance and Bybit. Investigators uncovered the use of shell companies in tax havens, with revenue routed via Singapore and Dubai, and significant unauthorized crypto balances held on foreign platforms. This marks the fourth major enforcement action against crypto platforms in India in less than three years, highlighting ongoing concerns about digital asset misuse and regulatory non-compliance.
