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

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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

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AICybercrime

Man Arrested at Hyderabad Airport in ₹1.19 Crore Digital Arrest Fraud

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Kerala Police have arrested a man at Hyderabad’s Rajiv Gandhi International Airport in connection with an alleged digital arrest scam in which an 80-year-old doctor from Kasaragod was reportedly defrauded of ₹1.19 crore.

The accused has been identified as Shamsad Choorakuth, a resident of Malattur in Malappuram. Police had issued a lookout circular after discovering that he had travelled abroad for employment.

Investigators allege that Choorakuth and his associates impersonated Mumbai Crime Branch officials and used threats of criminal action to pressure the elderly doctor into transferring large amounts of money.

Doctor Targeted Through Fake Mumbai Crime Branch Calls

According to investigators, the fraud took place between November 24 and December 17, 2025.

The victim, who lives in Nileswaram in Kasaragod, allegedly received repeated phone calls and WhatsApp video calls from people claiming to be Mumbai Crime Branch officers.

The callers reportedly told the doctor that his name had surfaced in a money-laundering investigation. They then falsely informed him that he was under “digital arrest” and instructed him to follow their directions.

The scammers allegedly maintained pressure on the victim by threatening him with legal consequences and claiming that transferring money to designated bank accounts would help establish his innocence.

Under the pressure, the doctor reportedly transferred a total of ₹1,19,35,000 from multiple bank accounts to accounts allegedly controlled by the fraudsters.

Suspect Intercepted at Hyderabad Airport

After receiving the doctor’s complaint, Kasaragod Cyber Police began investigating the financial transactions and communication records connected to the case.

During the investigation, police learned that Choorakuth had travelled outside India for work. Authorities subsequently issued a lookout circular covering immigration checkpoints.

On September 17, immigration officials at Rajiv Gandhi International Airport in Hyderabad reportedly intercepted Choorakuth after he arrived in the country and informed Kerala Police.

A cyber police team from Kasaragod travelled to Hyderabad and took custody of the suspect. Following his formal arrest, he was produced before the Kasaragod Chief Judicial Magistrate Court, which remanded him to 14 days of judicial custody.

Police Trace Money Trail and Other Suspects

Investigators are now examining the movement of the ₹1.19 crore allegedly transferred by the victim.

Police are scrutinising the bank accounts that received the funds and analysing communication records believed to connect the accused with other members of the suspected cybercrime network.

The investigation is aimed at determining Choorakuth’s specific role and identifying additional individuals who may have participated in the operation.

How Digital Arrest Scams Work

Digital arrest frauds typically rely on impersonation, intimidation and prolonged online interactions.

Scammers may pose as police officers, investigators, judges or other government officials and falsely accuse victims of involvement in serious crimes such as money laundering or financial fraud.

Victims are often told that they are under investigation or “digital arrest” and are instructed to remain connected through phone or video calls. The criminals then use threats of arrest, prosecution or account freezing to pressure victims into transferring money.

The Kasaragod case follows this pattern, with the elderly doctor allegedly being kept under sustained psychological pressure before transferring his savings.

Investigation Continues

The arrest at Hyderabad airport has provided investigators with an opportunity to examine the suspected financial and communication network behind the alleged fraud.

Authorities are expected to continue analysing bank transactions, digital communications and other evidence to identify the wider network and determine whether additional victims or financial accounts are connected to the case.

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AICybercrime

Man Arrested at Hyderabad Airport in ₹1.19 Crore Digital Arrest Fraud

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Kerala Police have arrested a man at Hyderabad’s Rajiv Gandhi International Airport over an alleged digital arrest scam in which an 80-year-old doctor from Kasaragod was reportedly cheated of ₹1.19 crore.

The accused, identified as Shamsad Choorakuth, a resident of Malattur in Malappuram, was intercepted by immigration officials after police issued a lookout circular against him. Investigators allege that he was part of a group that impersonated Mumbai Crime Branch officers to intimidate the elderly victim and extract money from him.

Fraudsters Claimed Doctor Was Linked to Money Laundering Case

The alleged fraud occurred between November 24 and December 17, 2025.

The doctor, who lives in Nileswaram, Kasaragod, reportedly received repeated phone calls and WhatsApp video calls from individuals claiming to represent the Mumbai Crime Branch.

The callers allegedly told him that his name had been connected to a money-laundering investigation. They then claimed that he had been placed under “digital arrest” and warned him of serious legal consequences.

Using these threats, the fraudsters allegedly instructed the victim to transfer money into several bank accounts as part of a supposed process to clear his name.

The doctor ultimately transferred ₹1,19,35,000 from multiple bank accounts to accounts allegedly controlled by the suspects.

Lookout Circular Leads to Airport Interception

After the victim reported the incident, Kasaragod Cyber Police began investigating the financial transactions and communications associated with the alleged fraud.

During the investigation, police reportedly discovered that Choorakuth had travelled overseas for employment. Authorities subsequently issued a lookout circular to immigration checkpoints.

On September 17, immigration officials at Hyderabad airport reportedly intercepted him after his arrival and notified Kerala Police.

A cybercrime team from Kasaragod then travelled to Hyderabad and took custody of the suspect. Following his arrest, Choorakuth was produced before the Kasaragod Chief Judicial Magistrate Court, which remanded him to 14 days of judicial custody.

Police Investigate Financial Trail

Investigators are now examining the movement of the ₹1.19 crore allegedly transferred by the victim.

Police are checking the bank accounts used in the transactions and analysing communication records to determine Choorakuth’s alleged links with other members of the suspected fraud network.

The investigation is also focused on establishing the accused’s precise role and identifying other people who may have been involved in the operation.

What Is a Digital Arrest Scam?

Digital arrest scams are a form of cyber fraud in which criminals impersonate police officers, government officials, investigators or judicial authorities.

Fraudsters typically tell victims that they are involved in a criminal investigation and use threats of arrest, prosecution or account restrictions to create fear.

Victims may be kept on prolonged phone or video calls while being instructed to transfer money to accounts controlled by the scammers.

In this case, investigators allege that the same tactic was used to convince the elderly doctor that he needed to transfer money to avoid criminal proceedings.

Investigation Into Wider Network Continues

The arrest at Hyderabad airport is now part of a wider investigation into the alleged cyber fraud network.

Police are expected to follow the financial trail and examine digital communications to identify additional suspects and determine whether other people were targeted using similar methods.

The case also highlights the growing use of impersonation and intimidation in online financial scams targeting elderly victims.

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AICybercrime

ED Raids 19 Locations in ₹14.95 Crore Online Investment and Work-From-Home Fraud Probe

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New Delhi: The Directorate of Enforcement (ED) has carried out searches at 19 locations across Tamil Nadu, Kerala and Srinagar as part of a money laundering investigation linked to alleged online investment fraud and fake work-from-home schemes.

The searches were conducted on July 10 and 11 under the provisions of the Prevention of Money Laundering Act (PMLA). According to the agency, the operation covered 16 locations in Tamil Nadu, two in Kerala and one in Srinagar. The case originated from two cybercrime complaints registered by the Tamil Nadu and Telangana Police.

Victims Allegedly Duped Through Fake Investment Platforms

According to ED officials, the accused allegedly attracted victims through fraudulent online investment platforms and work-from-home opportunities by promising unusually high returns and attractive earning opportunities.

Investigators claim that victims transferred nearly ₹14.95 crore into bank accounts allegedly linked to the accused. The agency is examining the flow of these funds and the methods allegedly used to conceal their origin.

Funds Allegedly Routed Through Mule Accounts and Crypto Channels

The ED has alleged that the suspected proceeds of crime were moved through multiple bank accounts, shell entities and cryptocurrency channels to disguise the financial trail.

Investigators have identified Roshan Fiaz as one of the individuals allegedly involved in the suspected laundering network. The allegations against him and others are part of an ongoing investigation and remain subject to judicial review.

The agency claims that several bank accounts were opened shortly before receiving fraudulent funds and later closed after transactions were completed. Officials are examining whether these accounts were allegedly used as part of a wider money laundering arrangement.

Digital Evidence and Financial Records Seized

During the searches, ED teams recovered documents, electronic devices, laptops, mobile phones, banking records, company-related documents and information connected with suspected shell companies.

Investigators also collected details related to cryptocurrency wallets and virtual digital assets to trace the movement of funds allegedly generated through cyber fraud.

According to the ED, assets worth around ₹3.35 crore in cryptocurrency and cash amounting to ₹14.50 lakh were seized during the operation. The agency also froze bank accounts containing more than ₹40 lakh.

Probe Focuses on Complete Money Trail

Officials said forensic analysis of digital devices, banking transactions and cryptocurrency records is underway to identify additional beneficiaries and determine the full extent of the alleged financial network.

Cybercrime experts have highlighted that online investment scams and fake employment frauds are increasingly using sophisticated laundering methods involving mule accounts, shell companies and digital currencies.

Former IPS officer and cybercrime expert Prof. Triveni Singh said that effective investigation of such cases requires advanced digital forensics, blockchain analysis, financial intelligence and coordination between multiple enforcement agencies.

He added that tracking the movement of illegal funds quickly is crucial for improving recovery efforts and strengthening legal action against organised cyber fraud networks.

The ED has stated that the investigation is continuing and further action will be taken based on evidence collected during the probe. The accused will be subject to due legal process, and final determination of guilt will be made by the competent court.

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