Indian Enforcement Directorate Investigates $525 Million Cryptocurrency Cross-Border Transactions Involving Mudrex and Instadapp

The Enforcement Directorate (ED) of India conducted searches at three locations in Bangalore and one in Madhya Pradesh on October 27 under the Foreign Exchange Management Act (FEMA) to investigate unauthorized cross-border cryptocurrency fund transfers involving amounts exceeding ₹50 billion (approximately $525 million). The investigation involves platforms such as Mudrex, Saber.money, and Instadapp (associated with Fluid). Preliminary investigations by the ED revealed that the entities in question allegedly set up shell companies in overseas tax havens to bypass the cross-border remittance channels authorized by the Reserve Bank of India (RBI) through stablecoins (especially USDT and USDC) and large-scale over-the-counter (OTC) transactions. The entities traded cryptocurrency assets on foreign exchanges like Binance, Bybit, and Huobi, transferring funds abroad. The ED's preliminary investigation found that the amount allegedly violated by Instadapp-related entities is approximately $40 million.

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