ED attaches crypto worth Rs 2,385 crore, Spanish mastermind of OctaFX Ponzi scam arrested

The Enforcement Directorate has seized digital assets and tracked down the Spain-based ringleader behind a multi-crore forex fraud that duped Indian investors.

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 a report by PTI.

The case involves a complex web of unauthorised forex trading operations that allegedly duped Indian investors on the false promise of quick, high returns through the OctaFX online trading platform.

According to the ED as cited by PTI, 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.

How investors were lured and duped

Between July 2022 and April 2023, OctaFX allegedly enticed Indian investors to trade in currency, commodities and crypto, all without RBI authorisation. The ED said investors were initially paid small profits to build trust, mimicking the classic Ponzi playbook before the operation collapsed.

The agency estimates that Indian investors lost around Rs 1,875 crore, while OctaFX earned profits of nearly Rs 800 crore during that period. Over its full operation between 2019 and 2024, the company is believed to have made over Rs 5,000 crore from Indian users, much of which was illicitly siphoned abroad.

A global laundering web

The ED investigation has revealed that OctaFX ran a multi-country network to conceal its money trail.

Marketing was handled by firms registered in the British Virgin Islands, while servers and back-office operations were based in Spain. Payment gateways were managed from Estonia, technical support came from Georgia, and the Cyprus entity served as the holding company for the Indian arm.

Entities in Dubai oversaw Indian operations through Russian promoters, while Singapore-based firms allegedly facilitated fake exports of software and R&D services, a method used to launder investor funds abroad.

Investor money collected via UPI and local bank transfers was routed through dummy Indian firms and individuals’ accounts, layered across multiple mule accounts, and finally moved offshore. The funds were disguised as payments for 'imported' services to shell entities controlled by Prozorov in Spain, Estonia, Russia, Hong Kong, Singapore, UAE and the UK, the ED said.

Some of these laundered funds were even reintroduced into India as foreign direct investment (FDI), completing a full circle of financial deception.

Assets seized, charges filed

So far, the ED has attached assets worth Rs 2,681 crore, including 19 immovable properties and a luxury yacht in Spain owned by Prozorov. Two chargesheets have been filed before a special PMLA court against 55 entities involved in the scam.

The agency described OctaFX as a “systematically organised global network designed to evade regulatory oversight and launder illicit profits.”

According to PTI, authorities say the investigation is still active, with more shell firms and crypto wallets expected to come under the scanner.