Global Web of Fraud Uncovered in OctaFX Investigation

The Enforcement Directorate (ED) has seized cryptocurrencies worth ₹2,385 crore in connection with a massive Ponzi-style fraud linked to the forex trading platform OctaFX. The investigation, led by the ED’s Mumbai unit, has also resulted in the arrest of the alleged mastermind, Pavel Prozorov, by Spanish authorities.

According to the agency, the company has systematically defrauded Indian investors by making false assurances of high returns through unauthorized forex trading schemes.

Global Fraud Web and Money Laundering

OctaFX defrauded investors of ₹1,875 in the period between July 2022 and April 2023, earning unlawful gains of about ₹800 crore. The platform operated on an international chain of companies and people meant to obscure its actual business and avoid accountability. ED officials said the total profits from India exceeded ₹5,000 crore, much of which was funneled overseas through complex layering of funds. Investors were initially paid small profits to gain confidence before the fraud escalated, a hallmark of Ponzi operations.

Furthermore, the agency found that OctaFX routed funds via UPI and local bank transfers using multiple dummy entities and individual accounts. This money was subsequently transferred to other countries in the guise of fake software importation and research and development (R&D). The directorate revealed that the company was active between 2019 and 2024, with its network distributed worldwide to conceal illegal transfers and evade Indian financial regulations .

SOURCE: X

The investigation also revealed that the marketing and operations of OctaFX were distributed in several countries. Entities in the British Virgin Islands conducted promotions, while backend operations took place in Spain, payment gateways were managed in Estonia, and technical support was provided in Georgia. A holding company in Cyprus oversaw the Indian arm, with Dubai-based and Singapore-based facilitators assisting in laundering funds through fake export transactions.

As part of the ongoing crackdown, the ED has now attached total assets worth ₹2,681 crore. This includes 19 immovable properties and a luxury yacht in Spain owned by Prozorov. Authorities have also filed two charge sheets before a special PMLA court against 55 individuals and entities involved in the scheme.

The case of OctaFX is one of the largest frauds concerning cryptocurrencies in India so far. It points out that digital assets are being exploited as platforms through which cross-border financial networks commit illegal transfers. The move by ED highlights the increased attention by India to monitoring crypto-linked money laundering and closer regulation of the digital finance sector.