NEW DELHI: India’s Enforcement Directorate (ED) announced on July 3 that it has provisionally attached offshore assets valued at ₹131.45 crore under the Prevention of Money Laundering Act (PMLA). The assets—owned by Russian national Pavel Prozorov, alleged mastermind behind the forex trading platform OctaFX—include a luxury yacht, mini‑jet boat, high-end car, and two residences in Spain.
The yacht, named “Cherry”, is reportedly a large Italian commercial vessel anchored in the western Mediterranean. This marks the second phase of asset attachment in this sprawling cross-border investigation; earlier, 19 properties worth ₹296 crore—also in Spain—had been frozen.
Forex Platform Accused of Massive Investors’ Fund Diversion
The attachment follows a Pune Police FIR registered in 2022, accusing OctaFX of misrepresenting itself as a legitimate forex broker, using IPL promotions, celebrity endorsements, and social‑media marketing to lure investors. According to the ED, it manipulated trades to engineer investor losses while funnelling proceeds totalling ₹800 crore overseas in just nine months.
The agency alleges that the network used shell e‑commerce firms with bogus directors and falsified KYC documents. Investor money was routed through mule accounts and unauthorised payment gateways. Funds were then transferred abroad under the guise of fake import transactions to entities controlled by Prozorov in Spain, Estonia, Russia, Hong Kong, Singapore, the UAE, and the UK.
Legal Momentum and Financial Security Implications
Escalating Global Enforcement
The recent asset seizures spotlight an intensifying crackdown on illicit wealth held overseas. The ED’s widened scope—from domestic bank accounts to luxury vessels abroad—signals a broader push to dismantle complex money‑laundering operations.
Sovereign Financial Regulation
Experts observe that targeting high-value assets like yachts and jets raises the stakes in financial regulation. The ED’s efforts suggest an evolving strategy under the PMLA: actively identifying and attaching assets hidden through layered conspiracies and forged identities.
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What Comes Next?
With two prosecution complaints filed in the PMLA court naming OctaFX and 54 other entities, the ED is expected to pursue additional asset seizures and issue international cooperation requests. India may also seek extradition and coordinated investigative support from jurisdictions where Prozorov allegedly holds assets.
This operation underscores the complexity of modern financial fraud, emphasising the need for enhanced regulation of offshore forex platforms, advertising standards, and investor due diligence.
About the Author – Sahhil Taware is a B.Sc. LL.B. (Hons.) student at National Forensic Sciences University, Gandhinagar, with a keen interest in corporate law and tech-driven legal change.