
The Enforcement Directorate (ED) conducted search operations in Mumbai, Chennai, Kolkata, and Delhi in connection with a case related to illegal online forex trading through international brokers, specifically the OctaFx trading app and octafx.com. During the searches, bank funds amounting to Rs 2.7 crore were frozen, and various incriminating documents and digital devices were seized.
Money Laundering Investigation and Scam Details
The ED initiated a money laundering investigation into the scam based on a First Information Report (FIR) registered at Pune’s Shivaji Nagar police station. The FIR was lodged against several individuals for their alleged involvement in luring people with high returns and duping them under the pretext of forex trading through the OctaFx trading platform.
The OctaFx online trading app and website are operating in India in association with the India-based entity M/s OctaFx India Private Limited. According to the ED, the app and its website have not been authorised by the RBI to deal in forex trading.
The ED’s investigation revealed that multiple accounts of different Indian banks were shown to investors/users on the app and website to collect funds under the guise of facilitating forex trading. The app and website manipulated trade activities and information, resulting in a net loss for traders. The fraudulently obtained funds were then transferred to multiple e-wallet accounts or bank accounts of dummy entities.
According to the ED, M/s OctaFx India Pvt Ltd, M/s OctaFx, and their entities have cheated investors in the guise of forex trading, earning a profit of more than Rs 500 crore from the Indian region. Some of these funds were allegedly layered through complex transactions and remitted abroad to related entities under the guise of bogus freight services and import of services.
Assets Attached and Involvement of Chartered Accountants
The ED has provisionally attached assets worth Rs 35 crore, including cryptocurrencies, bank balances, and gold coins, in connection with the illegal forex trading case involving OctaFx.
The investigation also exposed a network of chartered accountants and professionals who provided fake certificates of remittances and facilitated bank accounts and companies for the layering of funds. The entire process of managing the funds collected in dummy accounts and their diversion is allegedly being operated by the owner of OctaFx group entities based in Spain, Russia, Georgia, and Dubai.
Involvement of Indian Individuals and Promotions
M/s OctaFx has hired several Indian individuals working in Spain and Russia to operate the OctaFx trading platform and attract Indian citizens to invest in forex trading through OctaFx. The OctaFx trading platform is widely promoted on social networking sites and follows referral-based incentive models to acquire users.