ED names OctaFX in Rs 2,385 crore laundering probe; company calls charges ‘purely speculative’

ED names OctaFX in Rs 2,385 crore laundering probe; company calls charges ‘purely speculative’

Cryptocurrency worth Rs 2,385 crore has been attached under India’s anti-money laundering law, while the Spanish mastermind behind the alleged multi-crore OctaFX Ponzi scheme has been arrested in Spain, the Enforcement Directorate (ED) said.

According to the ED, a provisional order has been issued under the Prevention of Money Laundering Act (PMLA) to attach crypto assets valued at Rs 2,385 crore linked to the scheme. The agency said Pavel Prozorov, a Spanish national and the alleged 'mastermind' of the scam, was arrested by Spanish police for his role in orchestrating large-scale financial cybercrimes across multiple countries.

ED, Mumbai has issued provisional attachment order attaching movable properties in the form of cryptocurrencies worth approximately Rs. 2,385 Crore under PMLA, 2002 in connection with ongoing investigation against the unauthorized forex trading platform OctaFX for defrauding…

— ED (@dir_ed) October 17, 2025

However, OctaFX has denied allegations of money laundering and unauthorised trading after India’s Enforcement Directorate (ED) attached cryptocurrency assets worth Rs 2,385 crore under the Prevention of Money Laundering Act (PMLA) in connection with an alleged Ponzi-style forex trading scheme.

In a statement, Octa said: “We strongly refute any allegations of money laundering, promises of quick riches and high returns, and trading manipulations. The global broker Octa is operating in accordance with the laws and regulations of the jurisdictions in which it is registered and conducts business. Octa adheres to high international industry standards and best market practices across all its activities, including the implementation of KYC and AML compliance programs. Octa’s analytics are based on up-to-date market data provided by global and officially verified price sources. The global broker Octa is not involved in any legal proceedings in India. As a global broker, Octa is neither involved in nor has any information about Pavel Prozorov’s affairs. Any suggestion to the contrary would be purely speculative.”

ED, Mumbai Zonal Office has provisionally attached properties belong to Pavel Prozorov, the mastermind behind the platform OctaFx in the form of a luxury yacht, a minijet boat, luxury car and immovable properties in the form of two residential properties in Spain worth Rs.… pic.twitter.com/ptlEkLuX8b — ED (@dir_ed) July 3, 2025

The ED said a Spanish national, Pavel Prozorov, described as the alleged “mastermind”, has been arrested by Spanish authorities for his role in orchestrating large-scale financial cybercrimes across multiple countries.

Per the ED’s findings, between July 2022 and April 2023, Indian investors were encouraged to trade in currency, commodities, and crypto without authorisation from the Reserve Bank of India.

The agency alleged that participants were initially paid small profits to build trust, a pattern often seen in Ponzi-style operations, before the scheme collapsed.

According to the report by PTI, the ED estimated investor losses of around Rs 1,875 crore, while the operation purportedly generated profits of nearly Rs 800 crore during that period. The agency also claimed that total revenues from Indian users since 2019 could exceed Rs 5,000 crore, much of which it suspects was diverted abroad.

As per the ED, the operation allegedly involved multiple jurisdictions, including Spain, Estonia, Cyprus, the UAE, Singapore, and the UK, to conceal money trails. According to the PTI report, the agency said Indian investor funds were routed via local bank transfers and UPI, moved through shell firms, and disguised as payments for imported services before being transferred offshore.

Some of the proceeds were allegedly reintroduced into India as foreign direct investment (FDI), completing the money-laundering cycle, according to the ED.

However, these claims have not been independently verified by Moneycontrol, and Octa has denied any involvement in such activities.

The Reserve Bank of India (RBI) had earlier included OctaFX in its alert list of unauthorised forex trading platforms, warning investors against dealing with entities not registered with the central bank.