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Mega Scam: ED Seizes $286 Million From OctaFX Scandal!
India's ED seizes $286 million in crypto in OctaFX case. Cybercrime boss Prozorov arrested.
Mega Scam: ED Seizes $286 Million From OctaFX Scandal!
India's Enforcement Directorate (ED) has seized $286 million worth of cryptocurrencies as part of its anti-money laundering efforts. This measure is related to the investigation into the controversial platform OctaFX, which is suspected of defrauding Indian investors of significant sums. According to crypto.news, the alleged mastermind behind OctaFX, Pavel Prozorov, has been arrested in Spain on cybercrime charges.
OctaFX is accused of looting approximately $225 million from Indian investors through a global Ponzi network between July 2022 and April 2023. The platform was said to have operated through an extensive international network designed to evade regulatory oversight and funnel illicit funds across different jurisdictions. A significant portion of India's total estimated revenue of over $600 million was illegally transferred abroad.
The global network
The ED investigation has revealed that OctaFX's operation was supported by numerous companies in various countries. Marketing activities were organized by companies in the British Virgin Islands, while servers and back-office operations were hosted in Spain. Estonian companies were responsible for payment processing, and technological support came from Georgia. In addition, a company in Cyprus served as a holding company for the Indian activities.
It is further reported that a Dubai-based company monitored the Indian operations, supported by Russian promoters. At the same time, Singapore firms facilitated the export of fake money laundering services abroad. OctaFX appeared as an unauthorized online platform for trading currencies, commodities and cryptocurrencies.
Assets and Seizures
As part of the ongoing investigation, the ED has seized a total of assets worth $321 million, including 19 properties and a luxury yacht belonging to Prozorov. These measures represent one of India's most significant enforcement actions in the context of cryptocurrencies and money laundering. According to investigators, the funds collected through UPI payment systems and local bank transfers were layered through shell companies in India before being routed through multiple "mule" accounts.
Some of the laundered funds found their way back to India as foreign direct investment (FDI), creating a circular flow that obscured the illicit origins of these funds. OctaFX and Prozorov’s activities highlight the complex and cross-border nature of modern financial crime.