In a major crackdown, Indian authorities have uncovered a huge $90 million money laundering operation involving global trading platform OctaFX. The Enforcement Directorate (ED) swooped in, seizing assets worth $19 million across different countries, as the investigation revealed a tangled web of crypto and shell companies funneling “dirty money” abroad.
How the Scam Worked
OctaFX, incorporated in Cyprus and run by a network of operators from Russia, Georgia, Dubai, and Spain, became the focus of a multi-agency investigation after it was found to have generated a whopping ₹800 crore ($90 million) in criminal funds from Indian investors in just nine months. The company, known for its forex, commodity, and crypto dealings, reportedly used international payment gateways and crypto wallets to hide and transfer money made from fraudulent investment schemes that mainly targeted Indian citizens.
Adding complexity, some transactions were disguised as fake imports of services from Singapore, making it even harder for investigators to trace the money’s true origins.
Yacht, Villa, and Crypto Among Seized Assets
The ED’s sharp-eyed investigators managed to trace and freeze assets worth $19 million both in India and overseas. The loot included a luxury yacht, a villa in Spain, nearly $4 million in bank balances, crypto funds totaling 39,000 USDT, valuable land, and stock investments worth $9 million.
Not an Isolated Case
OctaFX wasn’t the only platform on the ED’s radar. Similar companies such as Power Bank, Angel One, TM Traders, Vivan Li, and Zara FX are also being investigated for their roles in large-scale online scams and money laundering.
How the Network Operated
Criminals used a mix of shell companies and fake brokers like Birfa IT to move cash to and from cryptocurrencies, making it difficult for authorities to follow the money trail. In one case, scammers transferred $540 million to entities in Hong Kong and Canada, citing fake invoices for server leasing and escrow services.
Stunning Surge in Financial Fraud
An ED report estimates that Indians lost a staggering $2.56 billion to financial fraud in 2024 alone a jaw-dropping 206% jump from 2023’s $840 million in losses. Reported scam cases also shot up by more than 50%, from 2.44 million in 2023 to 3.64 million this year.
Global Syndicate, Desi Victims
The masterminds behind these cyber investment scams were found to be operating from places like Laos, Hong Kong, and Thailand. Their MO? Hire agents in India to set up shell companies with fake documents, issue counterfeit IPOs and “digital arrest” threats, and use crypto and international payment systems to whisk criminal proceeds out of the country.
The Bottom Line
As the ED expands its probe and cracks down on shady platforms, one thing is clear: online investment fraud is getting bigger, more global, and harder to spot. Experts urge investors to be extra cautious, as criminals find new ways to dupe people and hide their ill-gotten gains in the digital age.
