The Enforcement Directorate (ED) on Saturday conducted searches in Mumbai, Chennai, Kolkata and Delhi in an ongoing money laundering probe related to OctaFx Trading App and website, which is accused of cheating investors to the tune of Rs 500 crore.
The ED froze funds to the tune of Rs 2.7 crore and seized documents and digital devices in the foreign exchange scam involving inter-national brokers and traders. The attached assets included cryptocurrencies, bank balances and gold coins totalling Rs 35 crore till date.
The agency had initiated a money laundering probe into the case based on the FIR filed at Shivaji Nagar police station, Pune, last year for duping investors with assurance of high returns on OctaFx platforms.
“The illegal forex app and website manipulated trade activities and information shown on its platform resulting in net loss to the traders and investors. The funds were siphoned and diverted to multiple digital wallets and bank accounts of shell companies,” the ED said.
The online forex exchange run by OctaFx India Pvt Ltd without Reserve Bank of India approval had lured investors to trade in foreign exchange and allegedly diverted the funds to OctaFx group entities based in Spain, Russia, Georgia and Dubai. The forex trading was promoted on social networking sites and followed referral-based incentive models to acquire users.
