ED searches Mudrex, Saber.money and Instadapp in over Rs 4,900 crore FEMA case

In short

• India's Enforcement Directorate searched three locations in Bengaluru and Madhya Pradesh on 27 October 2026 over alleged unauthorised crypto remittances worth more than Rs 4,900 crore.
• The Enforcement Directorate named Mudrex, Saber.money, Fluid and Instadapp, and said Binance and Bybit were used for illegal foreign payouts.
• Preliminary findings show unauthorised crypto balances on foreign platforms above Rs 4,600 crore and about $40m in Instadapp-related FEMA contraventions.
• The Enforcement Directorate said the searches exposed shell entities in tax havens, large OTC deals and transfers that bypassed RBI authorised channels.

India's Enforcement Directorate searched three locations in Bengaluru and Madhya Pradesh on 27 October 2026 in a Foreign Exchange Management Act probe into alleged unauthorised cross-border crypto remittances involving more than Rs 4,900 crore, according to the Enforcement Directorate's official post and press release dated 29 October 2026 reviewed by InvestIn.News. The Bengaluru Zonal Office said the searches exposed shell entities in tax-haven countries, large over-the-counter deals and illegal foreign payouts via platforms such as Binance and Bybit. The Enforcement Directorate said further investigation is under progress.

Who the ED searched and the search count

The Enforcement Directorate is India's agency that investigates breaches of foreign exchange and money laundering rules. The searches covered Mudrex and Saber.money, brands run by Bengaluru-based RPFAS Technologies Private Limited, and Instadapp, a decentralised finance protocol started in 2018 that now operates largely as Fluid. ETV Bharat reported that the entities and brands searched included Mudrex, Saber.money, Fluid and Instadapp. Public TV English reported three locations in Bengaluru, while Moneycontrol and ETV Bharat reported four premises in all: three in Bengaluru and one in Madhya Pradesh. The Enforcement Directorate's own post said three locations.

Mudrex, Saber.money, Instadapp and Fluid had not responded to requests for comment by 29 October 16:19 UTC.

The Mudrex and Saber.money allegations

The Mudrex and Saber.money strand centres on RPFAS Technologies Private Limited. The Enforcement Directorate alleges the company used USDT and USDC stablecoins to bypass Reserve Bank of India authorised remittance channels and advertised instant cross-border transfers without RBI authorisation. Preliminary findings in the Enforcement Directorate's release cite unauthorised crypto balances on foreign platforms of more than Rs 4,600 crore. ETV Bharat reported that the investigation began after complaints alleged large-scale FEMA violations by the Bengaluru-based entity.

The Instadapp and Fluid allegations

Instadapp is a separate thread. The Enforcement Directorate described it as a decentralised finance platform on Ethereum that operates mainly as Fluid. The agency said early findings pointed to about $40m in alleged FEMA breaches, with stablecoin revenue and investor funds kept in wallets requiring multiple signatures at Interop Labs Limited in the British Virgin Islands, controlled by people in India. Yes Punjab News reported that the stablecoins were sold in Singapore and the fiat proceeds were later sent to India as remittances falsely labelled as software development or consultancy fees, while money also reached the founders' Dubai bank accounts.

How the alleged remittance route worked

The Enforcement Directorate outlined how money allegedly moved. A person wanting to transfer money registered on the platforms, deposited funds into a company bank account, and the money was used to buy virtual digital assets, especially USDT. The stablecoins were sold on Indian crypto exchanges and the sale proceeds remitted to the receiver. The Enforcement Directorate said most entities were circumventing official channels by operating through related companies registered in foreign jurisdictions and controlled from India.

What users on X are saying

Crypto India (@CryptooIndia) posted on X that the Enforcement Directorate had searched three sites over suspected crypto-linked illegal cross-border deals worth Rs 5,000 crore involving Binance and Bybit. Atulkrishan (@iAtulKrishan1) posted on X that Mudrex and Instadapp had been raided over alleged FEMA breaches, while cryptobeginner.base.eth (@Cryotobeginer) advised users: 'Be careful guys.'

Questions readers ask

What did the ED find in the Mudrex and Instadapp search?

The Enforcement Directorate said searches on 27 October 2026 were part of a case involving alleged unauthorised cross-border crypto remittances of more than Rs 4,900 crore, including unauthorised crypto balances on foreign platforms above Rs 4,600 crore tied to Mudrex and Saber.money, and about $40m tied to Instadapp and Fluid, according to the Enforcement Directorate.

Are Binance and Bybit being raided by the ED?

No. The Enforcement Directorate's statement named Binance and Bybit as platforms allegedly used for illegal foreign payouts, not as places that were searched. The searches covered premises linked to Mudrex, Saber.money, Fluid and Instadapp.

What is the FEMA case against Mudrex and Saber.money?

The Enforcement Directorate alleges RPFAS Technologies, which runs Mudrex and Saber.money, used USDT and USDC stablecoins to bypass Reserve Bank of India authorised remittance channels and advertised instant cross-border transfers without RBI authorisation, with preliminary foreign platform balances above Rs 4,600 crore.

How did the alleged crypto remittance route work?

According to the Enforcement Directorate, users registered on the platforms, deposited money into a company bank account, which was used to buy stablecoins such as USDT. The stablecoins were sold on Indian crypto exchanges and the sale proceeds were remitted to intended receivers, bypassing RBI channels.

Our view

At InvestIn.News, we think this is best read as a FEMA remittance and stablecoin-rails story, not a raid on Binance or Bybit. The two searches are separate strands: RPFAS Technologies' Mudrex and Saber.money, with more than Rs 4,600 crore in alleged unauthorised foreign crypto balances, and Instadapp's Fluid protocol, with about $40m in alleged FEMA contraventions. The Enforcement Directorate's figures are preliminary, and the location count is already uneven: the agency says three locations, while some reports say four premises. We are watching whether Mudrex or Instadapp publishes its own account of the searches, and whether the Enforcement Directorate's further investigation turns these preliminary findings into formal show-cause notices or proceedings. That would tell us how much of this crosses from allegation into an established FEMA breach.

— Ishu Aggarwal

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Ishu Aggarwal