New Delhi, December 30
Directorate of Enforcement (ED) has filed a Prosecution Complaint against OctaFx and its associated entities under the provisions of the Prevention of Money Laundering Act (PMLA), 2002.
ED initiated investigation on the basis of FIR registered on 8th December 2021 by Shivaji Nagar Police Station, Pune against multiple individuals involved in misleading and defrauding investors by promising high returns under the guise of Forex trading through the OctaFx trading platform.
ED investigation revealed that OctaFx was at the centre of a fraudulent scheme that involved collecting funds from Indian investors under the pretence of Forex trading. Further, the OctaFX platforms frequently changed its login URLs and web addresses in a deliberate strategy to obscure fraudulent activities from investors. The platform manipulated trade activities, resulting in substantial net losses for investors while diverting the defrauded funds into e-wallets and accounts of fictitious entities. Moreover, OctaFx utilized fintech workers to create mule accounts linked to shell companies and fake e-commerce websites.
These entities were created to obtain payment gateway access, disguising investor funds as legitimate purchases. The funds were then routed abroad under the pretext of fake imports and freight services. The platform has gained traction through aggressive promotions including sponsoring an IPL team, and engaged various production agencies for influencer marketing. Payments to these production agencies were made as foreign inward remittances, through two Estonia-based companies, both are related entities of OctaFx and controlled by Pavel Prozorov.
ED investigation also revealed that the Proceed of Crime (POC) to the tune of Rs.800 crore was generated by OctaFx from its operations in India in just nine months. ED has conducted extensive search proceedings and has so far attached and seized assets worth approximately Rs 165 Crore, including attachment of 19 immovable properties located in Spain. These properties are owned by the principal accused, Pavel Prozorov, the mastermind behind the OctaFx operation, officials furher stated.
