Binance and Bybit Surface in India Crypto Transfer Probe Tied to Unauthorized Foreign Payouts
India’s Enforcement Directorate said an investigation into more than ₹5,000 crore in crypto transfers, roughly $527 million at Friday’s exchange rate, found unauthorized foreign payouts routed through platforms including Binance and Bybit. The agency said its Bengaluru office searched four locations on Oct. 27 — three in Bengaluru and one in Madhya Pradesh — and identified shell entities in tax haven jurisdictions, large over-the-counter trades, and illegal overseas payouts. The statement did not accuse Binance or Bybit of wrongdoing. The searches were conducted under the Foreign Exchange Management Act, or FEMA, which treats violations as civil matters subject to penalties. The release also named Bengaluru-based RPFAS Technologies Private Limited, operator of Mudrex and Saber.money, and said its preliminary estimate of FEMA contraventions exceeded ₹4,600 crore. Mudrex told ThePrint that it believes its operations comply with applicable laws and that user funds remain secure. ED also cited DeFi protocol Instadapp, which it said now largely operates as Fluid, and put the preliminary figure in that case at about $40 million. The agency announced no arrests, charges, or seizures.
