India’s ED Exposes $90M Crypto Laundering Scheme via OctaFX
The Enforcement Directorate (ED) in India has exposed a massive money laundering operation linked to OctaFX, an illegal trading platform. The scheme allegedly generated ₹800 crore ($90 million) from Indian operations in just nine months.
OctaFX, a forex and crypto platform, operated across multiple countries. It used shell firms, fake imports, and hawala networks to move illicit funds into cryptocurrencies. The platform,with a complex international setup,was part of a broader investigation into converting crime proceeds into crypto.
Investigators found that OctaFX used international payment gateways and crypto channels to launder funds from investment frauds. Fake imports and shell companies helped conceal the origin of these funds. The platform, with a base in Cyprus and operations in Dubai, laundered money from investment scams targeting Indians. The ED has seized $19 million in assets globally, including a yacht and a villa in Spain.The operation involved promoters in Russia, technical support in Georgia, and servers in Barcelona. The platform’s activities were uncovered by the ED.
Other platforms under investigation include Power Bank, Angel One, TM Traders, Vivan Li, and Zara FX. These platforms are also linked to investment frauds targeting Indians.
According to the Times of India,cyber fraud losses in India surged 206% in 2024,reaching $2.56 billion. The ED’s cases are based on FIRs registered by police across various cities.The Birfa IT case involved remittances of $540 million to Hong Kong and Canada using fake invoices.
Masterminds from Laos,Hong Kong,and Thailand hired Indian agents to set up shell entities. They issued fake IPO allotments and stock market investments while carrying out digital arrests to intimidate victims. Criminal proceeds were funneled through shell companies, converted into cryptocurrencies, and remitted overseas as payments for fake imported services. International payment gateways and hawala channels facilitated these illegal transactions. Some funds were brought back to India, disguised as legitimate stock market investments.
- ED seizes $19 million in assets globally.
- OctaFX used shell firms and fake imports to launder funds.
- Indians lost over $2.56 billion in financial fraud cases in 2024.
