The Enforcement Directorate (ED) recently interrogated well-known TV and reality show actors, including Krystle Dsouza and Karan Wahi, as part of their investigation into a money laundering case involving the online forex trading platform OctaFX.
The ED had summoned Krystle Dsouza, Karan Wahi, and Nia Sharma in connection with their alleged promotion of OctaFX, but Nia Sharma, known for her appearance in Bigg Boss, did not appear before the agency.
Earlier this year, the ED uncovered that OctaFX was operating in India without legal authorization. Despite lacking permission, the platform purportedly defrauded investors by falsely promising high returns through forex trading, amassing profits exceeding Rs 500 crore.
In April, the ED conducted searches in Mumbai, Chennai, Kolkata, and Delhi, seizing illegal documents, and digital devices, and freezing Rs 2.7 crore in bank funds as part of their probe. The investigation originated from an FIR filed by Pune's Shivaji Nagar Police Station against individuals accused of defrauding investors.
OctaFX's online trading activities in India were allegedly conducted in partnership with OctaFX India Private Limited, despite not being authorized by the Reserve Bank of India (RBI) for forex trading operations. The platform extensively utilized social media for promotion and employed referral-based incentives to attract users.
Investigations revealed that OctaFX manipulated trade activities, resulting in net losses for traders. Funds acquired through fraudulent means were transferred to various e-wallets or bank accounts associated with dummy entities. A significant portion of these funds was subsequently laundered through intricate transactions involving shell entities and purported business services abroad.
Based on their findings, the ED has attached assets worth Rs 35 crore, including cryptocurrencies, bank balances, and gold coins, identified as proceeds of crime. The search operations also exposed a network of professionals involved in facilitating fraudulent transactions, including issuing fake remittance certificates and managing bank accounts for fund layering purposes.
The operational management of OctaFX's illicit activities, including fund diversion and management of dummy entity accounts, was allegedly overseen by the group's owners based in Spain, Russia, Georgia, and Dubai. The platform also employed Indian nationals in Spain and Russia to facilitate its forex trading operations targeting Indian investors.
