The Enforcement Directorate has carried out search operations across four locations linked to Bengaluru-based RPFAS Technologies Private Limited as part of an investigation into suspected unauthorized cross-border cryptocurrency transactions estimated at around Rs 5,000 crore. The operations were conducted on Tuesday by the agency’s Bengaluru Zonal Office under Section 37 of the Foreign Exchange Management Act, covering three premises in Bengaluru and one site in Madhya Pradesh. RPFAS Technologies operates digital asset platforms under the brand names Mudrex and Saber.money.
The federal financial probe follows complaints alleging substantial violations of foreign exchange regulations by the entity. Preliminary enquiries and intelligence gathered by the agency indicated that digital currencies were potentially used to transfer funds across international borders while evading authorized banking and remittance channels. Investigators suspect that stablecoins, particularly USDT and USDC, were deployed to move money overseas without securing the regulatory approvals required under Indian foreign exchange laws.
Suspected Route via Offshore Shell Entities and Foreign Platforms
The preliminary probe indicates the possible involvement of shell companies established in tax havens to facilitate these fund transfers. Investigators are closely examining high-value over-the-counter transactions, where digital assets are traded directly between private counterparties or through specialized brokers rather than on public order books.
The agency is also scrutinizing foreign payouts routed through major international cryptocurrency exchanges, including Binance and Bybit. Officials are working to trace the links between transactions executed on these global platforms and RPFAS Technologies. A core component of the inquiry focuses on determining whether domestic customer capital or funds originating from Indian corporate entities were transferred abroad through these international mechanisms without statutory clearances.
Lack of Regulatory Authorization for Payment Services
Investigators are examining promotional material issued by the firm, which reportedly advertised crypto-based transfer and payment options promising rapid cross-border processing. Official inquiries focus on whether RPFAS Technologies obtained mandatory authorization from the Reserve Bank of India before operating such cross-border payment operations.
Preliminary findings indicate that the firm was operating without the required regulatory clearance from the central bank. Investigators are looking into whether the marketing and operation of cross-border payment mechanisms without a valid central bank license constituted a deliberate breach of statutory frameworks governing overseas financial remittances.
Scrutiny of On-Ramp and Off-Ramp Facilities
A significant portion of the ongoing probe targets the on-ramp and off-ramp facilities provided by the platform. These settlement gateways allow users to convert fiat currencies, such as the Indian rupee, US dollar, and euro, into digital tokens, as well as sell cryptocurrencies to withdraw money back into regular bank accounts.
Investigators suspect that these conversion channels were utilized to transfer capital across borders outside the purview of the formal banking system. If established, such arrangements would represent direct contraventions of the provisions laid out under the Foreign Exchange Management Act. The agency is currently reviewing records retrieved during the search operations to determine the underlying nature of the transactions, identify the original source of funds, map the transaction routes, and pinpoint the final overseas beneficiaries.
