ED Attaches ₹131.45 Cr In Spanish Assets Of OctaFX Mastermind
The ED’s findings indicate that OctaFX generated at least ₹800 crore in illicit proceeds from its Indian operations over nine months.
NEW DELHI: The Enforcement Directorate (ED) on Thursday announced the provisional attachment of assets worth approximately ₹131.45 crore in Spain, including a luxury yacht and immovable properties, under the Prevention of Money Laundering Act (PMLA). These assets belong to Pavel Prozorov, a Spanish national and the alleged mastermind behind the unauthorised forex trading platform OctaFX.
The attached assets comprise a commercial Italian-model luxury yacht cruising in the Western Mediterranean, a minijet boat, a luxury car, and two residential properties in Spain.
The ED’s probe was launched following an FIR by Shivaji Nagar Police Station in Pune, which accused several individuals of defrauding investors with false promises of high returns on the OctaFX platform. The investigation revealed that OctaFX, promoted via IPL sponsorships, social media and celebrity endorsements, laundered investor funds through mule accounts held by fake e-commerce firms. These shell companies, staffed with dummy directors and manipulated KYCs, posed as legitimate merchants to access payment gateways. Funds were further routed through unauthorised payment aggregators and escrow accounts to obscure their origin and purpose.
OctaFX also changed its login URLs and web addresses to conceal its operation from investors. The platform manipulated trades to generate losses for users while siphoning funds into e-wallets and bank accounts of fictitious entities.
The ED’s findings indicate that OctaFX generated at least ₹800 crore in illicit proceeds from its Indian operations over nine months. Investor money was funneled out of India under the guise of fake service imports to entities controlled by Prozorov across Spain, Estonia, Russia, Hong Kong, Singapore, the UAE and the UK.
To date, the ED has seized and attached over ₹296 crore in assets, including 19 properties in Spain owned by Prozorov. Two prosecution complaints have been filed against OctaFX and 54 other accused, and the Special PMLA Court has taken cognizance of these charges. Further investigation is ongoing.
