ED Traces Alleged ₹5,000 Crore OctaFX Forex Fraud Across Continents, Interpol Silver Notice Issued

Indian investigators have uncovered what they describe as a massive ₹5,000 crore online trading fraud linked to OctaFX, an online forex and cryptocurrency platform marketed to Indian investors as a gateway to global markets. Authorities allege that instead of providing legitimate trading services, the platform operated as a highly engineered system of financial loss, routing funds through shell companies, foreign servers, and cryptocurrency wallets spanning Europe and Asia.

Manipulated Trading Platform

According to the Enforcement Directorate (ED), OctaFX manipulated core trading functions, including candlestick charts, slippage, and algorithmic execution, ensuring users consistently lost money. The platform relied on an Introducing Brokers (IB) model, rewarding individuals for bringing clients onboard, incentivizing recruitment over responsible trading. Small early profits and withdrawals were allowed to build trust, a strategy investigators say mirrored Ponzi-like schemes.

The ED emphasized that all operations targeting Indian residents were conducted without Reserve Bank of India approval, which regulates forex trading involving domestic investors.

Money Trails Across Accounts and Countries

Indian investors reportedly funneled funds through UPI payments and bank transfers, which were then fragmented across dummy accounts and mule networks. Many transfers were disguised as payments for software imports or research services. A significant portion of the funds was traced to companies controlled by Pavel Prozorov, a Russian national allegedly coordinating the scheme. Some proceeds were reinvested in India as foreign direct investment, while others were used to purchase luxury assets, including yachts and real estate.

Cryptocurrency wallets under Prozorov’s control added further opacity, allowing funds to move across borders without easy detection.

A Global, Fragmented Network

Investigators describe OctaFX as operating through a distributed international structure:

• Marketing: British Virgin Islands
• Servers and back-office operations: Spain
• Payment gateways: Estonia
• Technical support: Georgia
• Holding company for Indian operations: Cyprus
• Strategic oversight: Dubai, coordinated by Russian promoters
• Support staff: Indian nationals based in Russia and Spain

Singapore-based entities were reportedly used to facilitate exports of bogus services, providing a cover for laundering proceeds abroad.

International Cooperation and Asset Recovery

The ED has issued an Interpol Silver Notice to share intelligence on overseas assets and is collaborating with the FBI and Europol to trace funds, particularly cryptocurrencies. Spanish authorities have been pivotal: Prozorov was arrested in October by the Guardia Civil, and property records have helped identify linked assets. Estonia has also provided key details regarding companies and residential addresses connected to the network.

The ED estimates that ₹1,875 crore was siphoned from Indian investors between July 2022 and April 2023, while total illicit profits from India between 2019 and 2024 may exceed ₹5,000 crore. Assets worth ₹2,681 crore have been attached so far, including cryptocurrencies and luxury properties in Spain. Multiple charge sheets have been filed against OctaFX and numerous associated individuals and entities.

The investigation is ongoing, as authorities piece together how a platform promising access to global markets allegedly became a conduit for one of the largest cross-border online trading frauds faced by Indian regulators