News · Regulation & Policy
Enforcement Directorate alleges Mudrex and Instadapp breached FEMA through unauthorized crypto transfers and offshore shell companies totaling roughly Rs 5,000 crore.
Key point 1 of 3
01
India's ED raided premises tied to Mudrex and Instadapp over alleged Rs 5,000 crore in FEMA cross-border violations.
Key point 2 of 3
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ED claims Mudrex moved Rs 4,600 crore using stablecoins and overseas shell entities without RBI remittance authorization.
Key point 3 of 3
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Instadapp is accused of routing $40 million through paper entities in the US, BVI, Singapore, and UAE while operating from India.
Context
Indian regulatory bodies have maintained intense oversight over cross-border capital flows and virtual digital asset operations, requiring registration with FIU-IND and strict…
Why it matters
The regulatory action places immediate scrutiny on Indian DeFi developers and centralized platforms utilizing international corporate structures to manage token treasuries and…
What to watch
The adjudicating authority's findings under FEMA, potential financial penalties or compounding applications with the RBI, and any formal legal defense filed by Instadapp founders.
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