The Indian Enforcement Directorate investigates Mudrex and other cross-border transactions amounting to approximately 525 million USD

On October 27, the Enforcement Directorate (ED) Bangalore branch conducted searches at three locations in Bangalore and one location in Madhya Pradesh under the Foreign Exchange Management Act (FEMA), investigating unauthorized cross-border cryptocurrency fund transfers involving amounts exceeding 50 billion rupees (approximately 525 million USD).

The investigation involves platforms such as Mudrex, Saber.money, and Instadapp (associated with Fluid). The ED's preliminary investigation found that the entities in question are suspected of using offshore tax havens to set up shell companies, bypassing the cross-border remittance channels authorized by the Reserve Bank of India (RBI) through stablecoins (especially USDT, USDC) and large-scale over-the-counter transactions.

Among them, the relevant entities conducted cryptocurrency trading through offshore exchanges such as Binance, Bybit, and Huobi, and transferred funds abroad. The ED's preliminary investigation found that the amount allegedly violated by the entities related to Instadapp is approximately 40 million USD.