Indian Probe Examines Crypto Transfers Exceeding 4,900 Crore Rupees Through Mudrex and Sabeer
Key Facts
India’s Enforcement Directorate conducted searches as part of an investigation into cross-border crypto transfers estimated at more than 4,900 crore rupees, Moneycontrol reported on October 29, 2026. The investigation concerns RPFAS Technologies, the operator of the Mudrex and Sabeer.Money platforms. The agency said the investigation began following complaints against the Bengaluru-based company. It said the searches were conducted by the Enforcement Directorate’s Bengaluru office under Section 37 of the Foreign Exchange Management Act, 1999. The agency’s reporting concerns an investigation, preliminary findings and allegations, and does not constitute a final ruling on liability.
The Directorate said, according to the report, that preliminary findings indicated crypto balances on foreign platforms exceeding 4,600 crore rupees in the case involving RPFAS. That figure refers to the balances the agency said it identified, while the estimated total transfers under investigation exceed 4,900 crore rupees. The report presents the two amounts as separate estimates, so they should not be treated as one figure or added together. The allegations focus on the use of cross-border transfers that, according to the agency, had not received approval from the Reserve Bank of India. The published information did not include a final investigation finding or a decision establishing that a violation had occurred.
According to the Directorate’s account cited in the report, the funds were used to buy digital assets, particularly stablecoins such as USDT and USDC. The agency said those assets were later sold on Indian trading platforms, and the proceeds were then transferred to beneficiaries. It said the two platforms had advertised cross-border money-transfer services using stablecoins without authorization from the Reserve Bank of India. It also said the searches uncovered, according to its allegations, large over-the-counter transactions and shell entities registered in Canada and the United States. The report also cited the use of the foreign platform Bybit among the events the Directorate said it had uncovered.
The coverage also addressed a separate matter involving the Instadapp platform, in which the Directorate alleges that stablecoin proceeds passed through accounts in Singapore. It said the money was returned to India as payments for purported software-development and consulting services, describing those fees as fictitious. Moneycontrol reported that the Directorate said its investigation into this route was ongoing. The report distinguishes this case from the matter involving RPFAS and the platforms it operates, and therefore does not attribute the estimated transfers of more than 4,900 crore rupees to the Instadapp case. The published account did not provide a final ruling on the nature of those payments or liability for them.
The investigations come amid broader scrutiny of cross-border crypto transfers in India. In June 2026, the Enforcement Directorate opened an investigation under the Foreign Exchange Management Act into five companies in Bengaluru over alleged crypto transfers exceeding 2,500 crore rupees. The agency said it searched six sites in the city on June 17 and issued restraint orders on accounts held by some of the companies, which contained about 6 crore rupees. On a separate regulatory track, India’s Financial Intelligence Unit said digital-asset service providers conducting specified exchange, transfer or custody activities must register as reporting entities and comply with anti-money-laundering obligations. The unit said it issued non-compliance notices in September 2026 to 15 such service providers.
The next steps will depend on what the Directorate finds about the routes taken by the funds and the parties involved, and whether it announces further action. The agency said the investigation into the Instadapp case is ongoing, while coverage described the main case as being at the search and preliminary inquiry stage. Questions for the investigation to resolve include the nature of the transactions, the flow of funds and the entities linked to them, and whether the arrangements violated the Foreign Exchange Management Act. The cited reports did not provide a final finding or a specific date for the announcement of further results. Until the Directorate announces developments, the figures and details in the case remain estimates and allegations under examination.