OctaFX Caught in an 800-crore Forex Scam; ED Seizes Assets Worth INR 160 Crore

In a development that could shatter OctaFXs hopes of flourishing its forex business in India, the Enforcement Directorate raided seven places across Delhi, Gururgram, Mumbai and Chennai in connection with an online forex trading scam involving a large amount worth INR 800 crore. It is alleged that the transaction was carried out through OctaFX's website and trading app. Raids conducted under the Prevention of Money Laundering Act, 2002, saw the detainment of several documents and digital services.

So, What Did the ED Probe Reveal?

The investigation unearthed how investors were made victims using mule accounts for illegal money transfers. The accused masked the URL to conceal the money trail, which extended as far as Spain. With some investors lodging an FIR at the Pune-based Shivaji Nagar Police Station against OctaFXs fake high-return promise while engaging in forex trade through its platform, the ED conducted raids at these places.

Investors‘ Funds Diverted Through the Unauthorized Payment Aggregator

The ED’s investigation saw OctaFX using mule accounts and diverting investors‘ funds through an unauthorized payment aggregator i.e. Dinero Payment Services. These funds were transferred to Dinero’s escrow account. The perpetrators used fake KYC and payment gateways operated by shell companies. These gateways were disguised as e-commerce platforms, showing transactions under the guise of e-shopping, vendor payment, chargeback and refund. However, the company used these for fake forex trading and illicit betting payouts. According to ED officials, the company used around 50% of user funds illegally.

Asset Seized Worth INR 160.8 Crore

The Enforcement Directorate has made a strong move by seizing the companys assets worth INR 160.8 crore, including some properties in Spain.

Is OctaFX a Regulated Entity in India?

No, OCTA FX is neither registered by the Securities and Exchange Board of India nor authorized by the RBI to carry out forex business activities. It does possess a global license by which it has entered India. The RBI has created a list of unauthorized entities, including OctaFX, for forex trading in India. Check out the official list released by the RBI.

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