Updated - April 20, 2023 at 08:30 PM.| New Delhi
The company hired several Indians working in Spain and Russia for operating its trading platform and induced citizens to invest in forex trading through it, said ED
The Enforcement Directorate (ED) has provisionally attached assets worth ₹34.75 crore of an online app, OctaFX in an illegal forex trading case.
The ED issued orders for provisional attachment of bank balances, crypto currencies, vehicles, gold coins, and cash on Wednesday under the provisions of Prevention of Money Laundering Act, 2002 (PMLA), said the agency in an official statement issued on Thursday.
The ED had initiated investigation on the basis of an FIR registered by the Pune police. Further, the Reserve Bank of India (RBI) has also issued an alert list of unauthorised entities /ETPs on February 10, this year, in which the name of OctaFX reflected.
The agency said its investigation has revealed that the online trading app and website are operating in India in association with India base entity,OctaFX India Pvt. Ltd. This forex trading platform is widely promoted on social networking sites and is also following referral-based incentive models for acquiring users to its platforms, ED pointed out.
“It has emerged in the investigation that multiple accounts of different Indian banks were being shown to investors/users on OctaFX app for collecting funds in the guise of facilitating forex trading,” the agency alleged. The said accumulated funds, accused the ED, after defrauding these investors/users, were transferred to multiple e-wallet accounts or to bank accounts of dummy entities for the purpose of layering.
OctaFX hired several Indians working in Spain and Russia for operating its trading platform and induced citizens to invest in forex trading through its app, the ED stressed.
Further, it also emerged that a major portion of the defrauded amount on this trading app was used by the agents of OctaFX for amassing personal wealth, the ED charged. It also appears, flagged the agency, that . OctaFX, by using its trading platform is manipulating the trade activities which is resulting in ultimately net loss to the traders.
According to the ED, these manipulating tactics involve frequent fluctuation in slippage, extending huge leverages and huge fraudulent advertisem*nts in India through internet to attract gullible investors.
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