The ED has stated that OctaFx India Pvt Ltd, M/s OctaFx, and associated entities deceived investors through forex trading, garnering over Rs 500 crore in profits from India.
On Thursday, the Enforcement Directorate (ED) carried out search operations in Mumbai, Chennai, Kolkata, and Delhi regarding a case linked to illicit online forex trading using international brokers, specifically the Octa trading app and octafx.com.
The ED reported on Saturday that bank funds amounting to Rs 2.7 crore were frozen and numerous incriminating documents and digital devices were confiscated during the searches.
Based on an FIR filed at Pune’s Shivaji Nagar police station, the ED initiated a money laundering probe into the scam. The FIR accused multiple individuals of enticing people with promises of high returns and defrauding them through forex trading via the Octa trading platform.
OctaFx Trading Platform Investigation: Findings and Actions by ED
The OctaFx online trading app and website are active in India through the India-based entity M/s OctaFx India Private Limited. As per the ED, neither the app nor its website have received authorization from the RBI for forex trading. The platform is extensively advertised on social networking sites and employs referral-based incentive models to attract users.
According to the ED, the investigation revealed that the app and website displayed multiple accounts from various Indian banks to investors/users, falsely portraying them as channels for facilitating forex trading fund collection.
The app and website altered trade activities and displayed information on their platform, leading to overall losses for traders. The funds obtained from deceiving investors/users were then transferred to numerous e-wallet accounts or bank accounts of fictitious entities, states the agency statement.
The ED has declared that M/s OctaFx India Pvt Ltd, M/s OctaFx, and associated entities defrauded investors under the guise of forex trading, resulting in profits exceeding Rs 500 crore from the Indian region. A portion of these funds purportedly underwent intricate transactions involving shell entities and were subsequently transferred abroad to related entities, disguised as fraudulent freight services, import of services, etc.
The anti-money laundering agency has thus far seized assets worth Rs 35 crore, including cryptocurrencies, bank balances, and gold coins.
OctaFx Investigation: Network Exposed and International Operations Unveiled
The ED’s investigation uncovered a network of chartered accountants and professionals providing fraudulent remittance certificates and aiding in the establishment of bank accounts/companies for fund layering. It has also been disclosed that the owner of Octa group entities in Spain, Russia, Georgia, and Dubai oversees the entire process of managing funds collected in dummy entity accounts and their diversion.
The ED has stated that M/s. Octa employed numerous Indian individuals based in Spain/Russia to manage the OctaFx trading platform and encourage Indian citizens to engage in forex trading through OctaFx.
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