Is Forex Trading Fraud the New Scam Wave? Cyber Fraudster from UP in ED Custody for 9 Days
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Synopsis
A major forex trading fraud involving thousands of deceived investors has led to the arrest of a cyber criminal from UP. Discover how the ED is cracking down on this extensive scam and what it means for the future of digital trading.
Key Takeaways
- Cyber fraud involving forex trading is on the rise.
- Investors should be wary of promises of high returns.
- ED's crackdown highlights the need for regulatory oversight.
- Beware of schemes that use virtual currencies for investment.
- Thorough research is essential before investing.
Chandigarh, Sep 26 (NationPress) A cyber fraudster hailing from Uttar Pradesh has been apprehended for deceiving thousands of investors with enticing promises of substantial returns from forex trading on digital platforms. He is now under the custody of the Enforcement Directorate (ED) for a duration of nine days, as ordered by a Special PMLA court, according to an official statement released on Friday.
Navab Hassan was taken into custody by the ED on Thursday under the PMLA, 2002, due to his involvement in misleading unsuspecting investors and raising public deposits for laundering Proceeds of Crime (POC) through various scams including QFX, YFX, BotBro, BotAlpha, Crossaplha, and Minecrypto.
The ED's investigation was prompted by multiple FIRs filed across Himachal Pradesh, Madhya Pradesh, Haryana, Uttar Pradesh, and Assam, under different sections of the IPC, 1860, indicating the extensive reach of this pyramid scheme across several states.
The federal agency reported that the accused guaranteed high monthly returns ranging from 5-6 percent via AI-bot-driven forex trading, utilizing payment aggregators and virtual currencies such as USDT to gather investments.
“After investments were made, the accounts are deleted, payouts cease after a few months, and the generated POC is redirected to the UAE to acquire properties in the names of close associates of the primary accused for lavish expenditures,” the statement elaborated.
The ED's crackdown follows recent actions against operators engaged in the QFX scam. Top agent Harinder Pal Singh, who was arrested on September 17, identified Navab as the chief operator in West Uttar Pradesh.
Further investigations revealed that Navab held the position of a senior field leader, ranking as a “Blue Diamond Executive,” and had amassed over 10,000 investors under his supervision.
He was reportedly collecting cash and channeling investments through payment aggregators and later via USDT, while coordinating with masterminds based in Dubai, including Lavish Chaudhary and his associates.
The ED revealed that Navab confessed that no genuine forex trading ever occurred on the platform and that investor dashboards displayed only notional balances, with new investments used to cover existing payouts.
Navab is known to have frequently traveled to the UAE to meet with the fugitive mastermind, Lavish Chaudhary, and was intending to travel to Dubai again. He also participated in Zoom meetings with Chaudhary to instill confidence in new investors.
Earlier, a search conducted at his residence in Shamli uncovered Rs 94.23 lakh of POC obtained from defrauding investors.
A recent Provisional Attachment Order amounting to Rs 9.49 crore has attached 45 properties acquired by the accused, his family, and associates as of August 26.
Searches on February 11 and July 4 led to the seizure or attachment of 185 bank accounts holding Rs 391 crore in POC across various shell entities, including QFX Trade Ltd, Npay Box Pvt Ltd, Capter Money Solution Pvt Ltd, Rainet Technology Pvt Ltd, Kindent Business Solution Pvt Ltd, Mool Business Solution Pvt Ltd, and Tiger Digital Services Pvt Ltd.
Point of View
It is imperative that we remain vigilant against such sophisticated scams. The ongoing investigations by the ED showcase the need for robust regulatory frameworks in the digital trading space to protect innocent investors. The Nation stands firm in advocating for transparency and accountability in all financial dealings.
NationPress
26/09/2025
Frequently Asked Questions
What is the forex trading fraud case about?
This case involves a cyber fraudster from Uttar Pradesh who deceived thousands of investors by promising high returns from forex trading. He was arrested by the Enforcement Directorate for his role in misleading investors and laundering money.
How did the fraudster operate?
The fraudster promised investors monthly returns of 5-6% through AI-bot-based forex trading, but no actual trading occurred. Funds were collected using virtual currencies and later diverted to overseas properties.
What actions has the ED taken?
The ED has arrested the fraudster, conducted searches leading to the recovery of significant amounts of Proceeds of Crime, and attached multiple properties linked to the accused.
How widespread is this scam?
The scam has been reported across multiple states in India, including Himachal Pradesh, Madhya Pradesh, Haryana, Uttar Pradesh, and Assam, indicating its extensive network.
What should investors do to avoid such scams?
Investors should conduct thorough research, verify the legitimacy of trading platforms, and remain cautious of promises of high returns with little risk.
