ED initiated investigation on the basis of FIR registered by Shivaji Nagar Police Station, Pune against several persons for involvement in showing false temptations of high returns and duping persons in guise of Forex trading
FinTech BizNews Service
Mumbai, April 20, 2024: Directorate of Enforcement (ED), Mumbai Zonal Office has conducted search operations on 18/04/2024, under the Prevention of Money Laundering Act (PMLA), 2002 at various locations in Mumbai, Chennai, Kolkata and Delhi as part of an ongoing probe in the case of Illegal Online Forex Trading through International Brokers namely OctaFx Trading App and website www.octafx.com.
According to a press release issued by the ED today, during the course of search operations, Bank funds to the tune of Rs 2.7 Crore have been frozen and various incriminating documents, digital devices have been found and seized. ED initiated investigation on the basis of FIR registered by Shivaji Nagar Police Station, Pune against several persons for involvement in showing false temptations of high returns and duping persons in guise of Forex trading through OctaFx trading platform. ED investigation revealed that the OctaFx online trading app and website are operating in India in association with India based entity M/s OctaFx India Private Limited. The said app (OCTAFX) and its website have not been authorized by RBI to deal in Forex Trading. This forex trading platform is widely promoted on social networking sites and is following referral-based incentive models for acquiring users to their platforms. It has emerged in the investigation that multiple accounts of different Indian banks were being shown to investors/users on OctaFx trading app/www.octafx.com for collecting funds in the guise of facilitating forex trading. It is also revealed that the OctaFx has manipulated trade activities and information shown on its platform ultimately resulting in net loss to the traders. The said accumulated funds, after defrauding these investors/users, were transferred to multiple e-wallet accounts or to bank accounts of dummy entities. This way, M/s OctaFx India Pvt Ltd, M/s OctaFx, and their entities have cheated investors in the guise of forex trading thereby earning a profit of more than Rs 500 Crore from Indian region. Portion of these funds were layered through web of complex transactions with the help of shell entities and remitted abroad to its related entities in the garb of bogus freight services, import of services, etc.
On the basis of investigation conducted and PoC identified so far, assets to the tune of Rs 35 Crore in form of crypto currencies, bank balances, gold coins etc were attached by ED. The search operations unveiled a network of chartered accountants and professionals, who gave fake certificates of remittances and facilitated bank accounts/companies for layering of such funds. It has also been revealed that the entire process of reflecting account numbers of dummy entities, managing the funds collected in these accounts and diversion of the same are being managed and operated by owner of OctaFx group entities based in Spain, Russia, Georgia and Dubai. M/s. OctaFx has also hired several Indian individuals working in Spain/Russia for operating the OctaFx trading platform and inducing Indian citizens to invest in forex trading through OctaFx. Further investigation is under progress.
