The Directorate of Enforcement (ED), Mumbai Zonal Office, conducted search operations on April 18, 2024, under the Prevention of Money Laundering Act (PMLA), 2002, at various locations in Mumbai, Chennai, Kolkata, and Delhi. This action was part of an ongoing probe into illegal online forex trading through international brokers, namely the OctaFx App and website www.octafx.com.
During the search operations, bank funds amounting to Rs 2.7 Crore were frozen, and various incriminating documents and digital devices were found and seized.
The ED initiated the investigation based on an FIR registered by the Shivaji Nagar Police Station, Pune, against several persons involved in showing false temptations of high returns and duping individuals in the guise of Forex trading through the OctaFx trading platform.
What is the OctaFx App?
The investigation revealed that the OctaFx online trading app and website were operating in India in association with the India-based entity M/s OctaFx India Private Limited. The app (OCTAFX) and its website had not been authorized by the RBI to deal in Forex Trading. This forex trading platform was widely promoted on social networking sites and followed a referral-based incentive model to acquire users.
It emerged from the investigation that multiple accounts of different Indian banks were shown to investors/users on the OctaFx trading app/www.octafx.com to collect funds under the guise of facilitating forex trading. OctaFx App manipulated trade activities and information on its platform, resulting in a net loss to traders. The accumulated funds, after defrauding investors/users, were transferred to multiple e-wallet accounts or bank accounts of dummy entities.
Read More about OctaFx App and ED Raids:
- ED Freezed Rs 21 Crore of OctaFX and related entities in the case of Illegal Online Forex Trading
- ED Provisionally Attaches Assets Worth Rs. 34.75 Crore in OctaFx Trading Platform Investigation
M/s OctaFx India Pvt Ltd, M/s OctaFx, and their entities cheated investors in the guise of forex trading, earning a profit of more than Rs 500 Crore from the Indian region. A portion of these funds was layered through a web of complex transactions with the help of shell entities and remitted abroad to related entities in the guise of bogus freight services, import of services, etc.
Based on the investigation and identified proof of concept, assets worth Rs 35 Crore in the form of cryptocurrencies, bank balances, gold coins, etc., were attached by the ED. The search operations uncovered a network of chartered accountants and professionals who provided fake certificates of remittances and facilitated bank accounts/companies for layering such funds.
It was revealed that the entire process of managing the funds collected in these accounts and diverting them was being operated by the owner of OctaFx group entities based in Spain, Russia, Georgia, and Dubai. M/s. OctaFx also hired several Indian individuals working in Spain/Russia to operate the OctaFx trading platform and induce Indian citizens to invest in forex trading through OctaFx.
