India’s Enforcement Directorate Probes Mudrex and Instadapp in Crypto Case

Investigators allege that Bengaluru-based RPFAS Technologies, which operates Mudrex and Saber.money, bypassed authorized remittance channels by using stablecoins like USDT and USDC for international transfers. According to the agency, the firm marketed instant global payment services despite lacking necessary authorization from the Reserve Bank of India. The investigation suggests that the company utilized foreign platforms, including Binance and Bybit, to move funds, with preliminary estimates of unauthorized balances and transfers exceeding ₹4,600 crore.

A separate track of the inquiry focuses on the Ethereum-based protocol Instadapp, which the Enforcement Directorate claims is managed from India despite being registered in Delaware. Officials allege that founders, including Sowmay Jain, used a network of shell entities across Singapore, the British Virgin Islands, and Dubai to route revenue back to India. The agency contends that these overseas companies lacked actual operations, serving instead to disguise income as payments for consulting and software development services. The estimated foreign exchange violations linked to Instadapp stand at approximately $40 million.

While the agency’s Bengaluru Zonal Office continues its review under the Foreign Exchange Management Act, no arrests or adjudicated penalties have been announced. The probe follows a wider trend of increased scrutiny by the Financial Intelligence Unit, which has recently targeted offshore exchanges and large-scale over-the-counter crypto transactions to enforce anti-money-laundering compliance.