Illegal trading platform amassed Rs 800 crore from Indian investors in nine months

ED officials reveal OctaFX used a cross-border structure—with promoters in Russia, tech support in Georgia, operations in Dubai, servers in Spain, and Cyprus registration—to bypass Indian regulations while offering unauthorized high-return forex, crypto, and commodity investments

In a major crackdown on digital financial fraud, the Enforcement Directorate (ED) is investigating an illegal trading platform, OctaFX, for allegedly duping Indian investors of nearly Rs 800 crore over a nine-month period. The case has raised alarm over the growing sophistication of cross-border cybercrime targeting Indian financial markets.

According to ED officials, OctaFX operated through a strategically designed international network meant to evade regulatory oversight in India. While its promoters are based in Russia, technical operations were handled from Georgia, with the main business run out of Dubai. Meanwhile, servers were hosted in Spain, and the company was registered in Cyprus — a setup that gave it a false sense of legitimacy.

Despite lacking approvals from Indian regulators like the RBI or SEBI, the platform aggressively marketed high-return investments in forex, crypto, and commodities to Indian investors.

Illicit fund routes and asset seizures

Investigators revealed that OctaFX masked its financial activities as payments for “import of services” from countries like Singapore, creating a paper trail that concealed the actual flow of funds. So far, the ED has seized assets worth Rs 172 crore, including a luxury Spanish villa, a private yacht, 39,000 USDT in cryptocurrency, and several domestic bank and demat accounts.

Not an isolated case: Larger threat emerges

Authorities believe OctaFX is just one player in a wider digital scam ecosystem. Other platforms like TM Traders, Vivan Li, Power Bank, and Zara FX are also under investigation. India witnessed a staggering 3.64 million cyber fraud cases in 2024 alone, resulting in losses exceeding ₹22,800 crore — a 200% rise from the previous year.

Much of the fraud is linked to organized groups operating from Southeast Asian hubs like Laos, Hong Kong, and Thailand. These networks frequently use cryptocurrency and fake IPOs to lure victims, often layering transactions through hawala and international gateways.

Expert warning on national security risk

Cybersecurity expert Prof. Triveni Singh has warned that such digital frauds are more than financial crimes. “They represent a national security threat and demand AI-driven monitoring, advanced digital forensics, and cross-border enforcement.”

The OctaFX case highlights the urgent need for regulatory reform and heightened investor vigilance in an increasingly risky online trading environment.