started · updated
India's Enforcement Directorate probes ₹5,000 crore crypto transfer racket
The Enforcement Directorate (ED) has launched investigations into alleged violations of the Foreign Exchange Management Act (FEMA) involving unauthorized cross-border cryptocurrency transfers worth approximately ₹5,000 crore. The probe focuses on Bengaluru-based RPFAS Technologies Limited, which reportedly operates the platforms Mudrex and Saber.money, as well as the decentralized finance protocol Instadapp and its associated platform Fluid.
On October 27, the ED’s Bengaluru Zonal Office conducted searches at three locations in Bengaluru and one in Madhya Pradesh. Investigators allege that the entities used stablecoins, such as USDT and USDC, to facilitate international money transfers outside authorized remittance channels, thereby bypassing Reserve Bank of India (RBI) regulations.
The agency suspects the use of shell entities in tax-haven jurisdictions and large over-the-counter cryptocurrency transactions to route funds. Specifically, the ED noted that RPFAS Technologies allegedly operated without mandatory RBI registration while using social media to attract investors. The investigation is also examining how funds were converted and transferred through offshore accounts in Singapore and Dubai before being routed back to Indian bank accounts.
Entities
Enforcement Directorate · Mudrex · RPFAS Technologies Limited · Reserve Bank of India · Saber.money
Claims
What the coverage asserts, and how many sources carry each claim.
- [○ 1 SOURCE] Transactions allegedly involved stablecoins such as USDT and USDC to bypass authorized remittance channels. www.newindianexpress.com
- [● 2 SOURCES] The company allegedly operated cryptocurrency platforms named Mudrex and Sabre. newsable.asianetnews.com · www.newindianexpress.com
- [○ 1 SOURCE] The firm allegedly promoted its own cryptocurrency token, Sabre Coin. newsable.asianetnews.com
- [● 2 SOURCES] The Enforcement Directorate is probing an alleged ₹5,000 crore cross-border cryptocurrency racket. newsable.asianetnews.com · www.newindianexpress.com
- [● 2 SOURCES] RPFAS Technologies Limited is linked to the alleged cryptocurrency racket. newsable.asianetnews.com · www.newindianexpress.com
- [● 2 SOURCES] The ED conducted searches in Bengaluru and Bhopal. newsable.asianetnews.com · www.newindianexpress.com
- [○ 1 SOURCE] Funds were reportedly transferred to offshore bank accounts in Singapore and Dubai. newsable.asianetnews.com
- [● 2 SOURCES] RPFAS Technologies allegedly operated without mandatory registration from the Reserve Bank of India. newsable.asianetnews.com · www.newindianexpress.com