The Enforcement Directorate (ED) is probing OctaFX, a Cyprus‑incorporated online trading platform, after findings revealed that it allegedly generated around Rs 800 crore of suspected proceeds of crime from its Indian operations in just nine months. The platform operates across forex, commodities, and cryptocurrencies.
OctaFX’s promoters are based in Russia, technical support runs from Georgia, Indian operations are managed from Dubai, while its servers are located in Barcelona. ED sources said the probe has evolved into a broader study of cross‑border operations, which allegedly convert crime proceeds into cryptocurrencies and use international payment gateways.
“Some transactions were disguised as fake imports of services from Singapore to mask illicit flows from India,” the ED report noted. Assets worth Rs 172 crore were attached both in India and abroad, including a yacht, a villa in Spain, Rs 36 crore in bank deposits, 39,000 USDT cryptocurrency, and demat and land holdings worth Rs 80 crore.
The Mumbai zonal unit of the ED is leading the OctaFX investigation. The platform is among several under scrutiny for alleged investment frauds, alongside Power Bank (Bengaluru), Angel One, TM Traders, Vivan Li (Kolkata), and Zara FX (Kochi). These cases stem from multiple FIRs lodged in different cities.
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The ED highlighted similar patterns in other cyber frauds, particularly in the cryptocurrency sector. “Cyber frauds in the name of cryptocurrency included Birfa IT and related firms acting as brokers, converting huge amounts of money to and from crypto to help clients send money to China for under‑invoiced imports, laundering the PoC (proceeds of crime) through cryptocurrency,” the report stated. In the Birfa case alone, Rs 4,818 crore was allegedly remitted to Hong Kong and Canadian entities controlled by fraudsters, disguised as payments for leasing servers or escrow services, supported by fake invoices.
The agency also flagged a steep rise in financial frauds in India. Indians reportedly lost over Rs 22,800 crore in around 36.4 lakh cases in 2024 — a surge of more than 200% compared with Rs 7,465 crore in 2023. The number of cases increased by over 50% in the same period.
Another case examined by the ED involved fraudsters operating from Laos, Hong Kong, and Thailand, who allegedly hired Indian agents to create shell companies, issue fake IPO allotments, and conduct sham stock investments. Proceeds were channelled through cryptocurrencies and sent overseas as payments for fake “imports of services.” The report added that funds moved via payment gateways and hawala routes, with portions re‑introduced into India as supposedly legitimate stock market investments.
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