The Enforcement Directorate (ED) has exposed a massive Rs 800 crore forex trading scam orchestrated by OctaFX, an unauthorized online platform that defrauded Indian investors through false promises of high returns, generating illicit proceeds in just nine months of operations. According to ED’s chargesheet filed in December 2024, the scam—linked to Russian national Pavel Prozorov and 53 others—laundered funds via fake import invoices, mule accounts, and cryptocurrency, with assets worth Rs 296 crore seized, including a luxury yacht, properties in Spain, and 39,000 USDT tokens. For investors, cybersecurity experts, and regulatory watchers searching OctaFX Rs 800 crore scam, ED forex fraud bust 2024, or Pavel Prozorov OctaFX, the investigation—triggered by a 2021 Pune FIR—reveals a network spanning Russia, Estonia, Spain, and India, using influencers and Bollywood endorsements to lure victims. Prozorov, the alleged mastermind, fled India via illegal routes, and the platform’s Indian CEO Anna Rudaia is absconding. With two chargesheets filed and raids across Mumbai, Delhi, Chennai, and Gurugram yielding digital evidence, the case exemplifies rising forex frauds, with Indians losing over Rs 22,800 crore in 36.4 lakh cases last year.
OctaFX, operating without RBI authorization, promised 100% returns in months, using high leverage (1:100-500) to trap traders.
The Scam Mechanics: Luring Investors with False Promises
OctaFX, incorporated in Cyprus with servers in Barcelona, targeted Indians via aggressive marketing, including IPL sponsorships and endorsements by influencers and Bollywood stars. The platform lured users with guarantees of doubling investments in five months or tripling in eight, but manipulated trades to ensure losses.
- Modus Operandi: High-leverage forex trading (1:100-500) forced quick exits on adverse moves, booking profits for the platform. Funds were siphoned via fake import invoices to entities in Spain, Estonia, Russia, Hong Kong, Singapore, UAE, and UK.
- Mule Accounts: Local agents provided bank details of vulnerable groups (e.g., deaf individuals in Pune), earning commissions.
- URL Masking: Payment links disguised to evade banks and regulators.
- Proceeds: Rs 800 crore generated in nine months (2022-23), layered through shell firms and crypto.
A Pune FIR in 2021 exposed the scheme when brokers duped investors with “doubling” promises, leading ED probes.
| Scam Element | Tactic | Victim Impact |
|---|---|---|
| Luring | High-Return Promises | Rs 800 Cr Duped |
| Execution | High Leverage (1:100-500) | Forced Exits/Losses |
| Laundering | Fake Invoices, Mule Accounts | Funds Siphoned Abroad |
| Marketing | Influencers, IPL Sponsorships | Broad Reach |
ED’s Crackdown: Raids, Attachments, and Chargesheets
ED’s Mumbai Zonal Unit launched probes under PMLA, conducting raids in June 2025 across Mumbai, Delhi, Gurugram, and Chennai, seizing digital devices and documents. Two chargesheets filed against 54 accused, including Prozorov and Rudaia.
- Seizures: Rs 296 Cr assets, including Rs 42 Cr Spanish properties, yacht, 39,000 USDT.
- International Probe: Mutual Legal Assistance Treaty with Spain; links to Cyprus, Singapore, UAE.
- Ongoing: 20 flagged cases; Rs 22,800 Cr losses in 36.4 lakh frauds in 2024.
ED’s statement: “OctaFX operated without RBI authorization, misleading investors.”
Prevention: Safeguard Against Forex Scams
- Verify Platforms: Use SEBI/RBI-registered brokers; avoid high-return promises.
- Secure Documents: Never share PAN/Aadhaar unsolicited; monitor statements.
- Report Fraud: Call 1930 or visit cybercrime.gov.in.
Conclusion: OctaFX’s Rs 800 Cr Scam Unmasked
ED’s Rs 800 Cr OctaFX forex scam bust reveals a global network preying on Indians, with Rs 296 Cr seized and charges against 54. As investigations deepen, it’s a wake-up on unregulated trading. For victims, report now—will justice prevail? The trails lead abroad. TOI
