The Enforcement Directorate (ED) provisionally attached assets worth ₹34.75 crore in connection with its money-laundering investigation against an alleged illegal forex trading platform, OctaFx, its related entities and others. The agency's probe is based upon a probe by Pune police.
Assets attached under PMLA
The assets, which include bank balances, crypto currencies, gold coins, vehicles and cash, among others, were attached on Wednesday under the provisions of the Prevention of Money Laundering Act (PMLA). The ED had initiated its probe on the basis of a case registered by the Pune Police under various sections of the Indian Penal Code and the Maharashtra Protection of Interest of Depositors (MPID) Act. The Reserve Bank of India had also issued an alert list of unauthorised entities on February 10 this year, wherein the name of OctaFx reflected, ED sources said.
Accumulated funds transferred to dummy accounts
“ED investigation revealed that the online trading app and website are operating in India in association with the India-based entity, OctaFx India Pvt. Ltd. This forex trading platform is widely promoted on social networking sites and is also following referral-based incentive models for acquiring users to its platforms,” an ED source said. “It emerged in the investigation that multiple accounts of different Indian banks were being shown to investors / users on the OctaFx trading app for collecting funds in the guise of facilitating forex trading," the source said.
The accumulated funds, after allegedly defrauding these investors/users, were transferred to multiple e-wallet accounts or to bank accounts of dummy entities for the purpose of layering, the source said. It was also revealed that a major portion of the defrauded amount on the trading app was used allegedly by the agents of OctaFx for amassing personal wealth.
OctaFx manipulating trade activities
“It also appears that OctaFx by using its trading platform is manipulating the trade activities which is resulting in ultimately net loss to the traders. These manipulating tactics involve frequent fluctuation in slippage, extending huge leverages and fraudulent advertisements in India through internet to attract gullible investors,” the source said.
OctaFx also allegedly hired several Indian individuals working in Spain/Russia for operating the OctaFX trading platform and inducing Indian citizens to invest in forex trading through OctaFX.
