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CryptoMedium•29 October 2026•
3 min read

India Puts Crypto Transfers Under Investigation at $538 Million in RPFAS Case

Key Facts

1Finance Magnates estimated alleged violations linked to the RPFAS Technologies case at about $538 million, or 4,600 crore rupees.
2Alleged violations in the Instadapp case were estimated at about $40 million, or 380 crore rupees.
3The Enforcement Directorate searched four locations on October 27: three in Bengaluru and one in Madhya Pradesh.
4India’s industrial production index grew 6.7% year on year in September, compared with 8.0% in August.

India’s Enforcement Directorate searched four locations on October 27 in an investigation into cryptocurrency-related transfers and alleged foreign exchange violations. The searches covered three locations in Bengaluru and one in Madhya Pradesh under the Foreign Exchange Management Act, according to a report by Finance Magnates. The report estimated the alleged violations linked to RPFAS Technologies at about $538 million, or 4,600 crore rupees. It also cited a separate case involving Instadapp, estimated at $40 million, or 380 crore rupees. The allegations in the current case have not been established as a conviction.

Finance Magnates says RPFAS Technologies operates the Mudrex and Saber.money platforms, and that the $538 million estimate relates to alleged violations linked to its case. The report said authorities named Binance and Bybit among the foreign exchanges they said were involved in the transactions under investigation. This places the platforms’ names in the context of the authorities’ allegations, not as liability established in court. The amount in the Instadapp case is also separate from the RPFAS estimate, and the combined estimates should not be attributed to a single company. Facts concerning both companies and the platforms remain within the scope of the investigation and allegations cited in the report.

According to the report, customers deposited fiat funds that were converted into stablecoins, including USDT, then sold through crypto platforms to move the funds outside official banking channels. The report attributes this mechanism to what authorities allege occurred in the transactions under investigation. In the Instadapp case, the report said stablecoin revenues passed through entities in the British Virgin Islands, Singapore and Dubai. Those revenues were then converted into fiat currency and sent to India under descriptions of software and consulting fees that the report characterized as fictitious. The report estimated the alleged violations in this case at about $40 million, equivalent to 380 crore rupees. These descriptions do not constitute a ruling that a violation occurred or a conviction.

In parallel with the investigation, India’s industrial production index showed preliminary year-on-year growth of 6.7% in September 2026, compared with a quick estimate of 8.0% in August. The Ministry of Statistics and Programme Implementation said the September reading was provisional and would be revised in subsequent releases. The ministry attributed the month’s growth to a 7.6% increase in manufacturing output and an 11.2% year-on-year rise in electricity and gas supply. These figures provide economic context for the period in which the searches took place, while the investigation remains a separate regulatory matter from production data. The ministry set November 30, 2026, as the release date for the October index.