India ED Searches Mudrex and Instadapp Premises in $525M Crypto Probe

India's Enforcement Directorate (ED) has searched premises linked to crypto platforms Mudrex and Instadapp in an investigation into alleged cross-border transactions worth more than ₹5,000 crore, or above $525 million. The searches took place on Oct. 27. The agency announced its preliminary findings in an Oct. 29 press release.

The ED's Bengaluru Zonal Office carried out the searches under Section 37 of the Foreign Exchange Management Act, 1999 (FEMA). The release lists three premises in Bengaluru and one in Madhya Pradesh.

Mudrex and Saber.money

The Mudrex probe targets Bengaluru-based RPFAS Technologies Private Limited, which operates both Mudrex and Saber.money. It follows complaints alleging large-scale foreign exchange violations. The ED alleges USDT and USDC were used to move money across borders outside authorized remittance channels. It also alleges the entity advertised instant international transfers without Reserve Bank of India authorization.

The agency's preliminary estimate for Mudrex and Saber.money exceeds ₹4,600 crore, covering unauthorized cross-border transfers and unauthorized crypto balances held overseas. The ED further alleges that overseas-registered related businesses were controlled from India. It cited large OTC transactions, entities incorporated in Canada, Lithuania and the United States, and crypto activity on Binance and Bybit.

Instadapp

The ED's separate allegations against Instadapp involve about $40 million in FEMA violations. Searches covered two premises in Bengaluru and one in Madhya Pradesh. The release named Sowmay Jain as one of the founders managing the operation from India.

The agency listed entities in Delaware (Instadapp Labs Inc.), the British Virgin Islands (Interop Labs, Summerspeak), Singapore (Upsurge Labs, Bhindi Labs) and Dubai (Pebble Labs Technology). It alleges these overseas companies had no offices or employees at their registered locations.

According to the ED, protocol revenue and investor funding arrived as stablecoins in multisig wallets of Interop Labs Ltd. (BVI) controlled by people in India. The stablecoins were allegedly sold via Independent Reserve Singapore and QCP Capital Singapore, with fiat going to Upsurge Labs and Bhindi Labs accounts. The ED alleges remittances to India were presented as payments for bogus software development and consultancy fees, and that money was routed to founders' bank accounts in Dubai.

What the release does not say

The ED described its findings as preliminary and said the Instadapp investigation remains underway.

The release announced no arrests, adjudicated penalty or customer withdrawal deadline. It named Binance and Bybit as platforms used but announced no penalties against either. It also published no transaction hashes, account statements or transaction-by-transaction calculation for the $40 million estimate.

Mudrex's public compliance page lists RPFAS Technologies as registered with India's Financial Intelligence Unit (VA00031079). The page does not respond to the allegations.

Earlier enforcement

The searches follow several earlier actions this year. In June, the FIU sought records of large OTC transactions (trades above $10,000, dating back to January 2026) from at least three major exchanges, according to reporting based on The Economic Times. In a separate June probe, the ED searched six Bengaluru premises and alleged more than ₹2,500 crore in unauthorized crypto-linked cross-border transfers involving five payment businesses, including Transak Technology India and Carretx Technologies.

In September, FIU-IND named 15 offshore providers, including Weex, Blofin, WOO X and WhiteBIT, and sought takedown of their apps and URLs.