Indian law enforcement agencies assert that an unauthorized trading platform handled transactions exceeding Rs. 800 crore, equivalent to roughly $96 million, within a nine-month period. Authorities indicate the platform’s founders are located in Russia, while its technical support team operates from Georgia. Operational management within India, however, is allegedly coordinated from Dubai, with the platform’s servers physically situated in Barcelona.
OctaFX, the online trading platform in question, is currently under scrutiny by Indian investigators. The probe focuses on potential money laundering activities involving the transfer of substantial sums from India to overseas tax havens over several years. India’s financial crime agency, the Enforcement Directorate (ED), is reportedly examining OctaFX as part of a broader investigation into international networks that convert illicit earnings into digital currencies, utilizing global payment processing services.
Indian Authorities Allege OctaFX Generated $96 Million from Illegal Activities
According to reports, a joint investigation by several Indian agencies suggests that OctaFX accrued over $96 million through alleged criminal activities in just nine months. Sources reveal some of these funds were concealed using complex methods. It is alleged the platform utilized deceptive import services from Singapore to disguise the origins of criminal funds originating from India. In one specific instance, the ED claims to have identified Rs. 172 crore worth of assets linked to the case, located both within India and internationally, including a luxury yacht, a Spanish villa, Rs. 36 crore held in bank accounts, 39,000 USDT, real estate holdings, and Demat holdings valued at approximately Rs. 80 crore.
Furthermore, the ED is reportedly investigating other platforms besides OctaFX. The Bengaluru zonal unit is looking into Power Bank, another online platform suspected of investment fraud. The Kolkata zonal unit is investigating Angel One, TM Traders, and Vivan Li, while the Kochi unit is examining Zara FX. These ED investigations are based on initial police reports filed across various Indian cities.
“Cyber-related frauds, often cloaked as cryptocurrency schemes, involve entities like Birfa IT and associated companies acting as intermediaries,” the ED stated in its findings. “These firms convert substantial sums to and from cryptocurrency, aiding clients in transferring funds to China for fraudulently under-invoiced imports, effectively laundering the proceeds of crime through digital currencies.” In the Birfa IT case, investigators discovered that individuals succeeded in transferring over Rs. 4818 crore to entities in Hong Kong and Canada under their control.
Officials State Foreign Nationals Typically Control Such Operations
Officials claim payments sent overseas are often justified under the guise of leasing server space, or as escrow service fees tied to falsified invoices. ED data reveals that Indian citizens have collectively lost more than Rs. 22,800 crore due to approximately 3.64 million cases of financial fraud reported in 2024, representing a significant 206% increase in estimated losses from Rs. 7,465 crore in 2023. The ED also noted a 50% increase in the number of investigations from 2023 to 2024.
A similar investigation into another instance of cyber investment fraud revealed that the core of the operation was being managed from Laos, Hong Kong, and Thailand. These individuals established and maintained shell corporations using fabricated documents. Indian nationals were employed to carry out supporting actions, including issuing bogus IPO allotments, conducting sham stock market investments, and orchestrating fake digital arrests.
The money obtained through illicit activities is gathered from several shell corporations and subsequently converted into digital assets. These are then transferred internationally as payments for fabricated import services. While international payment gateways serve as intermediaries in many of these illegal transactions, a portion of the funds is also laundered via informal “hawala” channels, according to the ED. The Enforcement Directorate reports it uncovered instances where illegal funds were subsequently returned to India, masked as legitimate investments in the stock market.
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