ED Raids Forex Trading Platform OctaFx in Fraud Case, Seizes Over Rs 80 Crore
- ByStartupStory | July 25, 2024
The Enforcement Directorate (ED) has conducted search operations at various locations linked to the forex trading platform OctaFx, which stands accused of defrauding investors of several crores. The searches, carried out by ED’s Mumbai Zone, took place in Mumbai, Kolkata, Delhi, and Gurgaon under the Prevention of Money Laundering Act (PMLA).
Forex trading, short for foreign exchange trading, involves buying and selling currencies to make a profit from fluctuations in exchange rates. The ED initiated the investigation against the platform based on an FIR filed in Pune, accusing several individuals of cheating investors by projecting false promises of high returns through the OctaFx trading platform.
The OctaFx app and website are not authorised by the Reserve Bank of India (RBI) to engage in forex trading. The probe revealed that the Indian arm of the company and its entities have defrauded investors under the guise of forex trading, thereby earning over Rs 1,000 crore from India.
A portion of these funds was layered through a web of complex transactions with the help of shell companies and remitted abroad to related entities under the pretence of bogus freight services, import of services, and other means, sources said.
“The illegally obtained money was also funnelled into SEBI-registered Alternative Investment Funds (AIFs) to present it as legitimate. Furthermore, it was discovered that OctaFx used entities based in the British Virgin Islands and Estonia to transfer funds for its promotional activities to attract investors,” the officials stated.
Investigations also found that these activities were managed by the owner of OctaFx group entities based in Russia, Spain, Georgia, and Dubai.
The Enforcement Directorate has so far attached assets worth approximately Rs 38 crore in the form of cryptocurrencies, bank balances, and gold coins in connection with the case. During the search operations, movable properties, including bank funds and Demat account holdings worth approximately Rs 80.43 crore, have been frozen. Various incriminating documents and digital devices have been recovered and seized.
“The total attachment or freezing in this case to date stands at around Rs 118 crore. Further investigation is ongoing,” the officials added.
Startup Story Entrepreneur Awards 2024 – Celebration of entrepreneurial excellence and a recognition of outstanding achievements in the business world.
The Startup Story Entrepreneur Awards will recognize the best and brightest in entrepreneurship.
Free nominations are open. Nominate Now!
Follow Startup Story
Related Posts
