India Seizes $286M Crypto in OctaFX Money Laundering Case
India’s Enforcement Directorate (ED) has seized cryptocurrency worth $286 million. This action is part of an anti-money laundering probe into OctaFX, an unauthorized forex trading platform.
The ED also announced the arrest of Pavel Prozorov, the alleged mastermind behind OctaFX. Spanish authorities apprehended Prozorov for cybercrimes affecting multiple countries.
OctaFX operated as a global Ponzi scheme, duping Indian investors of $225 million between July 2022 and April 2023.The platform generated profits of about $96 million through a multi-country operation from 2019 to 2024. It evaded regulatory scrutiny by using a distributed network across various jurisdictions. Marketing was managed by entities in the British Virgin Islands, while Spanish entities hosted servers. Estonian entities handled payment gateways, and Georgian operations provided technical support. A Cyprus-based company served as the holding entity for Indian operations. Dubai-based entities oversaw Indian activities through Russian promoters, and Singapore entities facilitated the export of bogus services to launder funds abroad.
OctaFX collected funds through UPI and local bank transfers,then routed them through dummy accounts before layering across multiple mule accounts. Some laundered funds were reintroduced into India as foreign direct investment, obscuring their illicit origins.
OctaFX operated through a complex global network to evade regulatory scrutiny.Marketing was managed by entities in the British Virgin islands, with Spanish-based entities hosting servers. Estonian entities handled payment gateways, and georgian operations provided technical support.A Cyprus-based company served as the holding entity for Indian operations.
The platform duped Indian investors of $225 million between July 2022 and April 2023. Total profits from india are estimated to exceed $600 million, with a critically important portion transferred overseas through fake imports of software and R&D services. The ED has attached total assets worth $321 million, including 19 immovable properties and a luxury yacht in Spain owned by Prozorov. The seizures mark one of India’s most significant cryptocurrency-related enforcement actions under money laundering laws.
