Russian citizen extorted Rs. in forex trading scam. 800 crores were looted

Mumbai: The Enforcement Directorate (ED) has reportedly arrested forex trading platform OctaFX. Chargesheet has been filed in the Ponzi scheme worth Rs 800 crore. The second chargesheet has been filed against a total of nine individuals and 41 firms.

Operating in India for the past few years, OctaFX attracted public attention through aggressive marketing, including sponsorship of IPL teams and influencer promotions, but kept its fraud a secret. The scheme lured investors, including vulnerable groups, with the promise of unprecedented returns. Brokers, known as introducers, played an important role in attracting investments and were given good rewards such as lavish gifts and bonuses.

In 2021, ED started investigating this Ponzi scheme on the basis of a complaint against some brokers at Shivajinagar Police Station in Pune, Maharashtra. People were lured with double compensation in five months and triple compensation in eight months. Many deaf investors were also trapped in this Ponzi scheme.

The investigation found that OctaFX operated dormant accounts, shell entities and complex money laundering systems. The money collected from investors was sent through fake accounts and e-wallets, shell companies and foreign transfers under fake import orders. It is being told that an investment of Rs 800 crore has been received in a period of just nine months.

Despite claims of transparency and cooperation, OctaFX has been accused of fraudulent trading activities and causing losses to investors. Pavel Prozorov is believed to have taken advantage of the directorate’s loopholes by using fake entities to launder international money. The total of 19 properties in Spain linked to ED is Rs. Assets worth Rs 165 crore have been seized.

Another key figure, Anna Rudaiah, took over OctaFX’s Indian operations and facilitated illegal trading and money laundering. Despite the subpoena, she fled the country and is still handling overseas operations remotely. Their involvement proves to be a systematic attempt to hide illegal activity under the regulatory structure of OctaFX.

The ED is currently investigating and has filed a complaint against the company and its managers and has attached key assets. Such schemes have highlighted the dangers of unregulated trading platforms and the need for strict regulations to protect investors from sophisticated financial fraud.