India’s ED Catches Crypto Crooks! 🚨💰

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India’s Enforcement Directorate has seized cryptocurrency worth $286 million under anti-money laundering laws. 🕵️‍♀️💰 (Or, as I like to call it, “the ED’s version of a treasure hunt.”)

Summary

  • ED seizes $286M in crypto under anti-money laundering probe into OctaFX. Because someone had to stop the Ponzi scheme. Finally! 😂
  • Pavel Prozorov, the OctaFX mastermind, was arrested in Spain for cybercrimes. Guess he thought he could hide in a country with good tapas and worse laws? 🍷🕵️‍♂️
  • OctaFX duped Indian investors of $225M through global Ponzi network. Because who wouldn’t trust a platform that sounds like a tech startup but feels like a scam? 🤝💸

They also announced the arrest of Pavel Prozorov, the alleged mastermind behind the multi-billion-dollar OctaFX Ponzi scheme. 🎉 (Or as I call it, “the crypto version of a pyramid scheme with better marketing.”)

Spanish authorities arrested Prozorov based on his involvement in cybercrimes affecting multiple countries, according to an ED statement. Because nothing says “I’m a bad guy” like hacking across continents. 🌍💻

The provisional order issued under the Prevention of Money Laundering Act attaches the cryptocurrency holdings as part of an ongoing investigation into the unauthorized forex trading platform OctaFX. Because if you’re going to run a scam, at least make it complicated. 🧠💸

The platform allegedly duped Indian investors of $225 million between July 2022 and April 2023. Because nothing says “trust us” like a 12-month window of financial chaos. 😅

They also reportedly generated profits of approximately $96 million through a multi-country operation that operated from 2019 to 2024. That’s more than a decade of “I’ll just take your money and pretend it’s a business.” 🤡

Distributed global network evaded regulatory scrutiny

The ED probe found that OctaFX operated through a distributed global network designed to evade regulatory oversight and layer illicit funds across multiple jurisdictions. Because if you’re going to be a criminal, you might as well be a global one. 🌐👮‍♂️

Marketing activities were managed by entities in the British Virgin Islands, with Spanish-based entities and individuals hosting servers and back-office operations. Because nothing says “I’m legitimate” like a BVI shell company. 🏝️💼

Estonian entities handled payment gateways, Georgian operations provided technical support, and a Cyprus-based company served as the holding entity for Indian operations. Because if you’re going to be a criminal, you might as well have a passport for every country. 🌍✈️

Dubai-based entities oversaw Indian activities through Russian promoters, while Singapore entities facilitated the export of bogus services to launder funds abroad. Because nothing says “I’m a professional” like a money-laundering team with a 5-star itinerary. 🏙️💸

OctaFX presented itself as an online forex trading platform for currency, commodities and crypto trading without Reserve Bank of India permission. Because if you’re going to scam people, at least make it sound like a stock tip from your cousin. 📈🤑

Total profits from India are estimated to exceed $600 million, with a significant portion of this amount illicitly transferred overseas through the use of fake imports of software and R&D services. Because nothing says “I’m a visionary” like faking R&D to hide your crimes. 🧪🕵️‍♀️

The funds were routed to entities controlled by Prozorov in Spain, Estonia, Russia, Hong Kong, Singapore, UAE, and the UK. Because if you’re going to be a criminal, you might as well have a global address book. 🌍📬

OctaFX layering scheme used UPI and FDI routes

OctaFX collected investor funds through UPI payment systems and local bank transfers. They then routed them through dummy Indian entities and individual accounts before layering across multiple mule accounts. Because nothing says “I’m a genius” like using UPI to steal money. 📱💸

A portion of the laundered funds was later reintroduced into India as foreign direct investment, creating a circular flow that obscured its illicit origins. Because if you’re going to commit a crime, make it look like a business deal. 🏢💼

The ED has attached total assets worth $321 million in this case. This includes 19 immovable properties and a luxury yacht in Spain owned by Prozorov. The seizures are one of India’s most significant cryptocurrency-related enforcement actions under money laundering laws. 🛥️💸 (Also, they got a yacht. Because if you’re going to be a crook, you might as well do it in style.)

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2025-10-18 21:39