For engaging in illegal online foreign exchange (Forex) trading, the Enforcement Directorate (ED) froze several bank accounts having a combined balance of Rs. 21.14 crore belonging to M/s OctaFX and associated entities.
Earlier, the ED searched several locations belonging to M/s OctaFX India Private Ltd. and associated companies in connection with allegations of illegal online forex trading through overseas brokers, particularly the OctaFx Trading app and the website www.octafx.com.
The abovementioned online trading app and website are reportedly being used in India in association with M/s OctaFx India Pvt. Ltd., according to an inquiry conducted by authorities in accordance with relevant sections of the Foreign Exchange Management Act (FEMA). The social networking sites that are heavily promoting the forex trading platform use referral-based incentive models to draw members to their platform.
It has been noted that the funds raised from consumers, primarily through UPI and local bank transfers, is routed into the bank accounts of various dummy businesses before being domestically transferred to other banks for the purpose of layering. By using multiple layers of intricate financial transactions, the task of tracking money is made more challenging. Layering is the technique of separating the proceeds of criminal activity from their origin.
Investigations have revealed that the money has also been used for international transactions. Investigations have also revealed a connection between Indian partners/agents and international online Forex market brokers.