In one of the sharpest warnings yet about India’s growing vulnerability to online financial crime, investigators say an illegal trading platform called OctaFX siphoned nearly ₹800 crore (about $96 million) from Indian investors in just nine months. The case, now under the scanner of the Enforcement Directorate (ED), reveals a complex web of cross-border operations, shell companies, and digital laundering mechanisms.
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A Multinational Web
- According to ED officials, OctaFX’s operations were deliberately structured to evade Indian oversight.
- Promoters are based in Russia,
- Technical support is managed from Georgia,
- Core operations are run from Dubai,
- While its servers are hosted in Barcelona, Spain.
On paper, the company is registered in Cyprus, giving it an air of legitimacy, even as it illegally solicited Indian investors with promises of high returns in forex, commodities, and cryptocurrencies.
The Money Trail
Investigators say OctaFX disguised illicit fund transfers as payments for “import of services” from countries such as Singapore — transactions that existed only on paper.
So far, ED has attached assets worth ₹172 crore ($21 million), including:
- a luxury villa in Spain,
- a yacht,
- 39,000 USDT in cryptocurrency,
- multiple bank deposits and demat holdings.
Not an Isolated Case
OctaFX is far from alone. Authorities say platforms such as Power Bank,TM Traders, Vivan Li, and Zara FX are also under investigation for similar fraudulent schemes.
The scale of financial cybercrime is staggering. In 2024 alone, India recorded 3.64 million fraud cases, with estimated losses of ₹22,800 crore ($2.7 billion) — a 206 percent increase from 2023.
Cross-Border Laundering
Much of the fraud is orchestrated from hubs in Laos, Hong Kong, and Thailand, where organized groups set up shell companies targeting Indian citizens. Many victims are lured into fake IPOs or fall prey to the so-called “digital arrest” scams — psychological traps in which criminals impersonate law enforcement and demand money transfers.
Funds are often converted into cryptocurrency, routed through hawala channels, or pushed through international payment gateways, before being reinvested into global stock markets to appear legitimate.
Expert Warning
Cybercrime expert and former IPS officer Professor Triveni Singh called the trend a “clear and present danger” to India’s financial system.
“Illegal online trading platforms are not just about financial fraud — they pose a serious national security risk,” he said. “By using cryptocurrency and cross-border transactions, these networks make money trails vanish. Traditional investigation methods are no longer sufficient. What is needed now is advanced digital forensics, AI-driven monitoring, and robust international cooperation. Without stronger regulation and technical surveillance, such frauds will only grow more dangerous in the years ahead.”
A Growing Challenge
The OctaFX investigation underscores both the scale and sophistication of online financial crime in India — and the urgent need for stronger safeguards. Regulators, experts say, must tighten monitoring frameworks, while investors must remain cautious and avoid platforms that lack approval from Indian authorities such as the RBI or SEBI.
