The Enforcement Directorate is probing an alleged ₹5,000 crore cross-border cryptocurrency racket linked to Bengaluru-based RPFAS Technologies Limited. Searches in Bengaluru and Bhopal uncovered suspected illegal transactions.
The Enforcement Directorate (ED) has uncovered an alleged illegal cryptocurrency transaction racket worth ₹5,000 crore involving Bengaluru-based RPFAS Technologies Limited. The investigation has revealed that the company allegedly operated cryptocurrency platforms without obtaining the mandatory regulatory approvals and routed transactions through offshore entities in Singapore and Dubai. The agency has also traced ₹380 crore transferred to Indian bank accounts through suspected financial irregularities linked to these operations.
ED officials conducted searches at two locations in Bengaluru and one location in Bhopal, Madhya Pradesh, on Tuesday and Wednesday, following specific intelligence inputs. The investigation revealed that RPFAS Technologies Limited had allegedly been operating cryptocurrency services through platforms named Mudrex and Sabre.money since 2018.
According to the ED, the company operated without obtaining the mandatory registration from the Reserve Bank of India (RBI) for cryptocurrency-related transactions. Despite the lack of regulatory approval, the firm allegedly ran social media advertisements to attract investors. The agency also confirmed that both Mudrex and Sabre.money maintained active accounts with Indian commercial banks.
Users deposited funds in Indian rupees or US dollars directly into these platform accounts, after which the company converted the money into cryptocurrencies. While handling various digital assets, the firm allegedly promoted its own cryptocurrency token, Sabre Coin.
The company subsequently transferred the converted cryptocurrencies to overseas bank accounts in Singapore and Dubai. From these offshore locations, funds were reportedly transferred back to bank accounts specified by customers in conventional currencies. The company allegedly charged substantial commissions for these transactions. The ED said its investigation into the matter is continuing.
Alleged Illegal Online Crypto Banking Setup
In addition to cryptocurrency transactions, the firm allegedly created an online banking ecosystem that operated entirely through digital platforms. The system functioned without physical branches, offices or on-ground staff but reportedly processed transactions worth thousands of crores of rupees.
Customers could deposit money and earn interest through the platform. The system also offered loan facilities and charged transaction fees. According to the ED, the promoters established several shell companies, including Instadapp Labs, Pebble Labs, Bindi Labs and Upsurge Labs, in jurisdictions such as Delaware in the US, Singapore and the British Virgin Islands.
These entities were allegedly used to convert cryptocurrencies held on the platforms into fiat currency. The promoters also opened bank accounts overseas, while the operations were reportedly managed from Bengaluru in violation of applicable financial regulations.
ED Traces ₹380 Crore Transferred to Indian Accounts
ED officials stated that the promoters allegedly established foreign companies to take advantage of tax exemptions and other regulatory benefits. Funds were subsequently transferred from these offshore entities to an Indian shell company under the guise of software development and maintenance fees.
The promoters allegedly diverted these funds into their personal bank accounts. Investigators have traced ₹380 crore transferred to Indian bank accounts through this particular route.
The ED’s investigation into the alleged cryptocurrency racket and the movement of funds through domestic and overseas accounts is ongoing.