Why Did the ED Conduct Raids in Mumbai, Delhi, and Chennai Over Rs 800 Crore Illegal Forex Trading?
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Synopsis
In a significant operation, the Enforcement Directorate has launched raids across Mumbai, Delhi, and Chennai, targeting a massive illegal forex trading scheme worth Rs 800 crore. This crackdown follows the seizure of properties in Spain, revealing a complex web of fraud and money laundering orchestrated via the OctaFX platform.
Key Takeaways
- The ED conducted raids across multiple cities targeting illegal forex trading.
- Rs 800 crore was involved in the fraudulent scheme.
- Incriminating evidence including documents and devices were seized.
- OctaFX operated without RBI authorization.
- Funds were masked as e-commerce purchases to obscure their origin.
Mumbai, June 17 (NationPress) Following the seizure of properties in Spain, the Enforcement Directorate executed a series of coordinated searches across seven locations, including Mumbai, Delhi, and Chennai, in connection with a Rs 800 crore illegal forex trading case registered in Pune, as confirmed by an official on Tuesday.
During the operation, the ED confiscated incriminating documents and digital devices as part of an extensive investigation into illegal online forex trading facilitated through the international broker OctaFx Trading App and its website www.octafx.com.
The searches took place on Friday across seven sites, including Mumbai, Delhi, Chennai, and Gurgaon, under the provisions of the Prevention of Money Laundering Act (PMLA), 2002, the federal agency reported in a statement.
The investigation was initiated based on an FIR filed by Shivaji Nagar Police Station in Pune, targeting individuals accused of misleading investors with false guarantees of high returns via the OctaFX forex trading platform.
The ED’s inquiry uncovered that OctaFX, in collaboration with OctaFx India Pvt Ltd, operated within India without the required RBI authorization.
They swindled investors under the pretext of forex trading, amassing over Rs 800 crore in less than a year, the statement elaborated.
Searches indicated that OctaFX funneled investor funds through mule accounts into escrow accounts of an unauthorized payment aggregator, Dinero Payment Services.
The ED highlighted that shell companies masquerading as e-commerce platforms were created using fraudulent KYC documents to access payment gateways and avoid scrutiny.
Investor funds were concealed as online purchases, layered through numerous accounts, and ultimately disbursed as fictitious forex or betting payouts to obscure their origin, the report stated.
Nearly half of the user funds were rerouted from the OctaFX platform to mule payout accounts. These accounts were employed to distribute funds under the false guise of e-commerce refunds, chargebacks, and vendor payments, effectively masking the true flow and purpose of the money, according to the ED.
Search operations also unveiled that OctaFX utilized URL masking techniques to conceal the identity of payment gateways and evade regulatory oversight.
Instead of directing users to clearly identifiable payment links, they employed misleading or generic URLs, complicating the efforts of authorities and banks to trace the transactions back to unauthorized or illicit sources.
As part of the ongoing investigation, the ED has thus far attached, seized, or frozen assets valued at Rs 160.8 crore, including properties located in Spain, and has also filed two Prosecution Complaints, the statement concluded.
Point of View
We stand committed to delivering unbiased and authoritative news. The recent actions by the Enforcement Directorate reflect a critical effort to combat financial crimes that jeopardize investor trust and economic stability. Our duty is to keep the public informed while ensuring the integrity of the news we provide.
NationPress
17/06/2025
Frequently Asked Questions
What prompted the ED raids?
The Enforcement Directorate initiated raids based on an FIR filed in Pune against individuals accused of defrauding investors through the OctaFX forex trading platform.
How much money is involved in this illegal trading case?
The illegal forex trading case involves a staggering Rs 800 crore that was reportedly misappropriated from investors.
What methods were used by OctaFX to evade detection?
OctaFX utilized URL masking techniques and created shell companies to disguise their operations, making it challenging for regulatory authorities to trace fraudulent transactions.
What actions have been taken by the ED so far?
The ED has seized assets worth Rs 160.8 crore, including properties in Spain, and has filed two Prosecution Complaints as part of the ongoing investigation.
How does this case impact investors?
This case serves as a cautionary tale for investors, highlighting the risks associated with unregulated trading platforms and the importance of thorough due diligence.
