India’s Enforcement Directorate has seized cryptocurrency price $286 million underneath anti-money laundering legal guidelines.
Abstract
- ED seizes $286M in crypto underneath anti-money laundering probe into OctaFX.
- Pavel Prozorov, the OctaFX mastermind, was arrested in Spain for cybercrimes.
- OctaFX duped Indian traders of $225M via international Ponzi community.
Additionally they introduced the arrest of Pavel Prozorov, the alleged mastermind behind the multi-billion-dollar OctaFX Ponzi scheme.
Spanish authorities arrested Prozorov based mostly on his involvement in cybercrimes affecting a number of international locations, in accordance with an ED assertion.
The provisional order issued underneath the Prevention of Cash Laundering Act attaches the cryptocurrency holdings as a part of an ongoing investigation into the unauthorized foreign currency trading platform OctaFX.
The platform allegedly duped Indian traders of $225 million between July 2022 and April 2023.
Additionally they reportedly generated earnings of roughly $96 million via a multi-country operation that operated from 2019 to 2024.
Distributed international community evaded regulatory scrutiny
The ED probe discovered that OctaFX operated via a distributed international community designed to evade regulatory oversight and layer illicit funds throughout a number of jurisdictions.
Advertising and marketing actions had been managed by entities within the British Virgin Islands, with Spanish-based entities and people internet hosting servers and back-office operations.
Estonian entities dealt with fee gateways, Georgian operations supplied technical assist, and a Cyprus-based firm served because the holding entity for Indian operations.
Dubai-based entities oversaw Indian actions via Russian promoters, whereas Singapore entities facilitated the export of bogus companies to launder funds overseas.
OctaFX introduced itself as an internet foreign currency trading platform for forex, commodities and crypto buying and selling with out Reserve Financial institution of India permission.
Complete earnings from India are estimated to exceed $600 million, with a good portion of this quantity illicitly transferred abroad via using faux imports of software program and R&D companies.
The funds had been routed to entities managed by Prozorov in Spain, Estonia, Russia, Hong Kong, Singapore, UAE, and the UK.
OctaFX layering scheme used UPI and FDI routes
OctaFX collected investor funds via UPI fee programs and native financial institution transfers. They then routed them via dummy Indian entities and particular person accounts earlier than layering throughout a number of mule accounts.
A portion of the laundered funds was later reintroduced into India as international direct funding, making a round move that obscured its illicit origins.
The ED has hooked up complete belongings price $321 million on this case. This consists of 19 immovable properties and a luxurious yacht in Spain owned by Prozorov. The seizures are one in all India’s most vital cryptocurrency-related enforcement actions underneath cash laundering legal guidelines.
