India Names Binance and Bybit Among Foreign Platforms in $585M Crypto Remittance Probe

India’s Enforcement Directorate (ED) is investigating alleged cryptocurrency-linked cross-border transactions worth around $585 million (₹5,000 crore). The case involves Mudrex, Saber.money and decentralised finance protocol Instadapp.

On 27 October, the agency searched four premises, including three in Bengaluru and one in Madhya Pradesh, under the Foreign Exchange Management Act.

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The operation follows an earlier ED investigation into CoinSwitch Kuber. In August 2022, the agency searched premises linked to the crypto exchange over suspected violations of India’s foreign exchange laws.

Binance, Bybit Named in $538M India Crypto Probe

The latest probe centres on RPFAS Technologies, which operates Mudrex and Saber.money. The ED alleges that the company facilitated overseas transfers without authorisation from the Reserve Bank of India.

Customers allegedly deposited fiat currency that was converted into stablecoins such as USDT and sold through crypto exchanges to transfer funds outside official banking channels.

The agency also identified overseas entities in the US, Canada and Lithuania, and named Binance and Bybit among the foreign exchanges involved in the transactions under investigation. It estimates the alleged FEMA violations linked to RPFAS Technologies at $538 million (₹4,600 crore).

BREAKING: 🇮🇳 ED searches 3 locations over alleged ₹5,000 crore crypto-linked illegal cross-border transactions involving Binance and Bybit. https://t.co/Jp2zo78Dkg

Instadapp Faces $40M India Foreign Exchange Probe

The investigation also covers Instadapp, which operates as Fluid. The ED alleges that founder Sowmay Jain managed the protocol from India, although the business was presented as a US-based operation.

According to the agency, stablecoin revenues passed through entities in the British Virgin Islands, Singapore and Dubai before being converted into fiat currency and transferred to India as payments for what it described as “bogus software development and consultancy fees”. The alleged FEMA violations involving Instadapp are estimated at $40 million (₹380 crore).

India’s Crypto Crackdown Includes Raids and Fines

India has also taken action against offshore crypto exchanges over anti-money laundering compliance. In December 2023, authorities moved to block access to nine platforms, including Binance. Binance and KuCoin registered with India’s Financial Intelligence Unit in 2024, with Binance subsequently fined ₹188.2 million for alleged anti-money laundering violations.

Separately, tax authorities raided six Indian crypto exchanges in January 2022, uncovering approximately $9.4 million in unpaid taxes, according to reports at the time.

The allegations in the current case have not been established as findings of guilt.