ED Attaches Rs 2,385 Crore Crypto in OctaFX Ponzi Scam
The Enforcement Directorate (ED) has attached cryptocurrency assets worth Rs 2,385 crore and announced the arrest of the alleged Spanish mastermind behind the massive OctaFX Ponzi scheme that duped Indian investors.
Key Takeaways
- ED attaches Rs 2,385 crore in cryptocurrency under PMLA
- Alleged mastermind Pavel Prozorov arrested in Spain
- OctaFX operated without RBI permission from 2019-2024
- Total Indian profits estimated to exceed Rs 5,000 crore
Major Financial Fraud Uncovered
The case involves a sophisticated fraud where investors were lured with false promises of high returns through the unauthorized OctaFX forex trading platform. The ED issued a provisional order under the Prevention of Money Laundering Act (PMLA) to attach the cryptocurrencies.
International Operation Exposed
According to the ED, OctaFX systematically duped Indian investors of Rs 1,875 crore between July 2022 and April 2023 alone, generating profits of around Rs 800 crore through a multi-country operation.
The agency stated: “OctaFX presented itself as an online forex trading platform for currency, commodities and crypto trading without RBI permission. The initial investors received small profits to build trust as is generally seen in a typical Ponzi scheme.”
Global Money Laundering Network
The investigation revealed that Dubai-based entities oversaw Indian operations via Russian promoters, while persons in Singapore facilitated the export of bogus services to launder funds abroad.
These laundered funds were transferred overseas under the guise of fake imports of software and R&D services to entities controlled by Prozorov across Spain, Estonia, Russia, Hong Kong, Singapore, UAE and the UK. A portion was later reintroduced into India as .
Total Assets Attached
With this latest attachment, the ED has now seized assets worth Rs 2,681 crore in this case, including 19 immovable properties and a luxury yacht in Spain owned by the alleged mastermind Pavel Prozorov.
