Federal financial investigators in India executed a series of coordinated raids on Friday targeting multiple premises linked to prominent digital asset platforms Mudrex and Instadapp as part of an expanding probe into alleged foreign exchange violations. According to preliminary findings by enforcement officials, the sweeping operation centers on suspected infractions of the Foreign Exchange Management Act (FEMA) involving transactions estimated at a staggering ₹4,600 crore.
The high-stakes intervention underscores mounting regulatory pressure on the cryptocurrency sector in India, where authorities have increasingly scrutinized cross-border digital transactions and capital flows. Both targeted enterprises operate prominent services within the decentralized finance and crypto investment spheres, bridging traditional financial frameworks with blockchain technology, a dynamic that has frequently drawn the attention of statutory compliance overseers.
According to reports published by The Hindu, investigators are sifting through extensive digital records, financial ledgers, and communication logs seized during the searches to trace the origin and destination of the disputed funds. While official statements from the involved cryptocurrency firms are still awaited, legal and financial experts note that the sheer scale of the alleged ₹4,600-crore discrepancy places this inquiry among the largest digital asset-related financial probes in the nation's history.
As the investigation progresses, federal authorities are expected to summon key executives and compliance officers from both platforms for further questioning in the coming days. The outcome of this high-profile crackdown could establish crucial regulatory precedents for how decentralized finance operators handle foreign exchange compliance, potentially triggering broader legislative overhauls across the country's burgeoning digital economy.