The Enforcement Directorate (ED) said on Friday that it has issued a provisional order to attach movable properties in the form of cryptocurrency worth around a whopping ₹2,385 crore in the alleged multi-crore OctaFX Ponzi scam.
The alleged “mastermind” behind the scam, a man named Pavel Prozorov, has also been arrested by the police in Spain on the basis of his alleged involvement in cybercrimes spanning several nations, the probe agency said.
The provisional order has been issued under the stringent Prevention of Money Laundering Act (PMLA) in the case linked to a “fraud” allegedly committed by unauthorised foreign-exchange trading platform OctaFX. Several investors were allegedly duped by the firm after promising them higher returns.
“ED has so far attached assets worth over Rs. 2,681 Crore, including 19 immovable properties and a luxury yacht in Spain owned by Pavel Prozorov, who has been arrested by Spanish Police Authorities,” the probe agency said in a post on X.
What is the case?
According to the Enforcement Directorate, many Indian investors were “systematically duped” of ₹1,875 crore by OctaFX between July 2022-April 2023. The firm allegedly generated profits of ₹800 crore and its operations spanned across several nations.
{{/usCountry}}According to the Enforcement Directorate, many Indian investors were “systematically duped” of ₹1,875 crore by OctaFX between July 2022-April 2023. The firm allegedly generated profits of ₹800 crore and its operations spanned across several nations.
{{/usCountry}}"OctaFX presented itself as an online forex trading platform for currency, commodities and crypto trading without RBI permission,” ED said, reported news agency PTI.
"The initial investors received small profits to build trust, as is generally seen in a typical Ponzi scheme," it added.
The firm allegedly operated for around five years from 2019-2024 and made profits of over ₹5,000 crore from India alone during that period, according to the probe agency. Much of this money has been “illicitly” transferred to foreign countries.
The probe by the Enforcement Directorate revealed that the firm operated using a “distributed global network” designed to “evade” regulatory scrutiny, the PTI report said.
(With inputs from PTI)