India Crypto News: ED Flags Binance and Bybit in ₹5000 Crore Case

India Crypto News: ED Investigates $5.2B Transfers in 4 FEMA Searches

The ED Crypto FEMA Investigation is now one of India’s largest crypto enforcement cases. On October 27, 2026, the Enforcement Directorate (ED) searched four premises in Bengaluru and Madhya Pradesh. 

The agency says this India crypto news involves unauthorised cross-border crypto transfers worth more than ₹5,000 crore. The central question is whether these transfers bypassed approved remittance channels and broke the Foreign Exchange Management Act (FEMA). These are allegations, not court findings.

At a Glance

• Agency: Enforcement Directorate, Bengaluru Zonal Office

• Search date: October 27, 2026

• Locations: Three premises in Bengaluru and one in Madhya Pradesh

• Law: FEMA, 1999 (Section 37)

• Reported scale: More than ₹5,000 crore

• Brands named: Mudrex, Saber.money, Fluid and Instadapp

• Status: Ongoing. No court has established any violation.

Why the ED Searched Bengaluru and Madhya Pradesh

This investigation acted on complaints about large-scale FEMA violations. The complaints involve RPFAS Technologies Private Limited, a Bengaluru firm that operates Mudrex and Saber.money. The agency alleges the platforms offered fast international money transfers using crypto without authorisation from the Reserve Bank of India (RBI).

The India crypto news also reported signs of shell entities in tax haven countries, large over-the-counter (OTC) deals, and foreign payouts through platforms such as Binance exchange and Bybit. Being named in connection with transactions does not mean those exchanges broke any rule. Some reports also mention OTC platforms based in Canada, Lithuania and the United States.

Source: Official ED Press Release

ED Crypto FEMA Investigation at a Glance

How Crypto and Stablecoins Allegedly Enabled Cross-Border Transfers

The ED described a simple process. A user registers on the platform and deposits money in the company’s bank account. The company uses that money to buy stablecoins such as USDT. The coins are then sold on Indian crypto exchanges, and the sale proceeds go to the receiver.

Two terms help here. An on-ramp turns regular money, such as rupees, dollars or euros, into crypto. An off-ramp turns crypto back into money in a bank account. The ED says these services were used to move funds across borders without RBI-approved channels. This ED Crypto FEMA Investigation is about moving money abroad, not simply buying or selling crypto.

Mudrex, Saber.money and Foreign Platforms Under Scrutiny

The agency says RPFAS Technologies operates Mudrex and Saber.money. It alleges the entities did not follow RBI rules for inward and outward remittances. It also says many related entities were registered abroad but controlled from India.

The ED is checking how stablecoins and other assets moved through foreign platforms. It is also examining whether money spent on crypto activity abroad broke Foreign Management provisions. The firms have not been found guilty of anything.

Source: Wu Blockchain

Instadapp and Fluid: The Separate $40 Million FEMA Angle

Instadapp is a decentralised finance (DeFi) protocol on the Ethereum blockchain. Users can lend, borrow and swap tokens through smart contracts. The platform now operates largely under the name Fluid.

The Enforcement Directorate alleges that funds raised from investors arrived as stablecoins in multi-signature wallets of a British Virgin Islands entity, which Indian-based persons controlled. It says the coins were sold through two Singapore firms. The cash then went to Singapore bank accounts of group companies and was routed to India as payments for software and consultancy services. The ED called some of these payments bogus.

The agency also alleges Singapore bank prepaid cards were used for expenses in India. It says money also reached Dubai bank accounts of the founders. Preliminary findings put the FEMA contraventions at about $40 million, or roughly ₹340 crore. This is a separate figure within the wider probe. Do not add it to the ₹5,000 crore total.

FEMA Rules, RBI Authorisation and What the Investigation Could Mean

FEMA governs foreign exchange dealings and cross-border payments in India. Sending money abroad usually requires following RBI-approved routes. Trading crypto, using DeFi market tools and running a remittance service are different activities. Using cryptocurrency does not automatically mean FEMA was broken. The outcome depends on the facts and the rules that apply.

If violations are proven, crypto platforms and fintech firms may face tighter compliance checks. Users may also face closer scrutiny of how they send money abroad.

What Happens Next in the ED Crypto FEMA Investigation?

The probe continues. It is reviewing records, statements and transactions to find the full extent of the alleged violations. Key open questions include whether further action follows and whether the totals change.

Timeline: India Crypto News Key Developments

Note: The October 29 and 30 entries are report dates, not new enforcement actions.

Glossary

• ED: Enforcement Directorate, the Indian agency that probes economic crimes.

• FEMA: Foreign Exchange Management Act, 1999, India’s law on foreign exchange and cross-border payments.

• RBI: Reserve Bank of India, the central bank that sets approved remittance channels.

• On-ramp: A service that turns regular money into crypto.

• Off-ramp: A service that turns crypto back into regular money.

• OTC trading: A direct crypto deal between two parties, outside a public exchange.

• Shell entity: A company that exists mostly on paper, with little real activity.

Conclusion

The India Crypto news shows rising scrutiny of stablecoins, crypto remittances and foreign financial arrangements in India. The outcome depends on the ED’s findings, FEMA requirements and any later legal proceedings. India Crypto News Readers should follow official updates before concluding anything about any company.

YMYL Disclaimer: This article provides news and general information. It is not legal, tax or investment advice. The allegations remain under investigation. Consult a qualified professional about your own transactions. Cryptocurrency is volatile and risky. This content is for informational purposes only and is not financial advice. Do your own research before making any decision.