ED files chargesheet in OctaFX case
ED has filed a chargesheet against OctaFX for defrauding investors through unauthorized forex trading, allegedly earning over ₹1,000 crore.
MUMBAI: The Enforcement Directorate (ED) has submitted its chargesheet in a Mumbai special court against several accused persons and entities as part of its money-laundering probe against online forex trading platform OctaFX, accused of defrauding investors through unauthorised trading by an Indian subsidiary. The OctaFx-linked entities allegedly earned a profit of more than ₹1,000 crore from the country, ED’s investigation revealed.

The agency started its investigation based on a case registered by the Shivaji Nagar police station, Pune, against several persons for their alleged involvement in entrapping and then duping investors on the pretext of earning high returns via forex trading through the OctaFx trading app and website. ED’s investigation revealed that the Saint Lucia-registered company was operating in India via an India-based entity, OctaFx India Private Limited. The OctaFX app and website were not authorised by the Reserve Bank of India to deal in forex trading, agency sources said. The conduct and operations of forex trading (not being conducted on recognised stock exchange) is illegal and also violated forex-management regulations, according to ED.
The agency’s probe revealed an alleged nexus between international online forex trading brokers and their Indian partners/agents. The platform’s operations were allegedly managed and operated by the owner of OctaFx group entities based in Russia, Spain, Georgia and the United Arab Emirates. The probe revealed the alleged existence of a panel of top operators, who are nationals of countries including Russia, Estonia, Spain and the Czech Republic.
The online platform’s entities allegedly earned a profit of more than ₹1,000 crore from the India region and a portion of these funds were layered through a web of complex transactions with the help of shell firms. Such funds were then allegedly remitted abroad to related entities in the name of bogus freight services and import of services, according to ED sources.
The trading platform was widely promoted on social networking sites and followed a referral-based incentive model for acquiring new users and ED’s probe revealed that funds collected from users, through Unified Payments Interface/local bank transfers were channelised through dummy entities and eventually resulted in overseas transactions. The probe showed that a portion of the funds were allegedly deceitfully obtained from investors in the guise of forex trading on OctaFx. The money was, thereafter, allegedly funnelled into Alternative Investment Funds (AIF) registered with the Securities and Exchange Board of India (SEBI) as investments to portray them as legitimate funds, ED sources said.
OctaFx allegedly utilised entities based in the British Virgin Islands and Estonia to transfer funds for its promotional activities to lure new investors. This was corroborated by celebrities and production houses who have participated in OctaFx’s promotional campaigns across different platforms, according to ED sources. ED’s probe revealed that shell firms were allegedly utilised to spread, divert funds through fraudulent e-commerce websites to circumvent restrictions imposed by payment gateways and hide the nature of such incoming funds, sources said.
It was also alleged that the platform had allegedly entrusted technical experts to help create a payment aggregator to bypass beneficial-owner regulations. Such a payment aggregator was allegedly instrumental in redirecting misappropriated funds, thereby enabling OctaFx to receive money from unsuspecting investors, according to ED. The agency has attached or frozen assets worth around ₹118 crore in the case so far.
OctaFX on Wednesday responded to ED's probe, denying the allegations against it. OctaFX's official spokesperson said, “Octa (ex. OctaFX) has a proven track record in financial services since 2011. Hundreds of thousands of satisfied clients worldwide serve as testimony to the quality of our services. We strongly refute the allegations of money laundering, promising exorbitant returns, and engaging in any activities that could put traders at a disadvantage, such as chart manipulation and unduly extending high leverage. Contrary to the allegations, Octa strictly adheres to anti-money laundering (AML) practices as a law-abiding company. We cooperate with local authorities upon receipt of duly executed requests and their legitimate justification. We always aim to provide a fair and secure trading environment to our clients, doing everything possible to combat money laundering and terrorism financing.”
“As a CFD broker, Octa operates as an intermediary between traders and financial markets, providing a secure and transparent space where each trade is executed fairly and independently. We have only been able to operate successfully for 13 years because we fully comply with this fundamental industry requirement,” the spokesperson added.
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