In a major crack down on illegal online foreign exchange trading, the enforcement directorate (ED) conducted search operations at multiple locations in Mumbai, Chennai, Kolkata and Delhi in an ongoing money laundering probe of OctaFx Trading App and website cheating investors to the tune of Rs 500 crore.
The ED freezed bank funds to the tune of Rs 2.7 crore and seized various incriminating documents and digital devices in the foreign exchange trading scam involving international brokers and traders. The attached assets include cryptocurrencies, bank balances and gold coins totalling Rs 35 crore till date.
Money Laundering Probe Reveals Illegal Forex Trading Scam By OctaFx App And Website
The federal financial crime investigation agency had initiated a money laundering probe into the forex trading scam based on the FIR filed at Shivaji Nagar police station, Pune last year for duping investors with assurance of high returns on Octafx app and website trading 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,” alleged ED officials.
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 diverted the funds to OctaFx group entities based in Spain, Russia, Georgia and Dubai.
ED Probe Uncovers Complex Network In Illegal Forex Trading Scam
The ED probe had exposed a network of chartered accountants and finance professionals providing fake certificates of remittances and facilitated bank accounts and shell companies for the layering of the funds collected from investors through a web of complex transactions and remitted abroad to related entities in the garb of bogus freight services, import of services and other bogus expenses.
The illegal forex trading was promoted on social networking sites and follows referral-based incentive models for acquiring users to Octafx app and online platforms.
