India’s ED seizes $286M in cryptocurrency under anti-money laundering laws
India’s Enforcement Directorate (ED) has seized cryptocurrency worth $286 million under the Prevention of Money Laundering Act (PMLA) in connection with the multi-billion-dollar OctaFX Ponzi scheme.
Authorities also confirmed the arrest of Pavel Prozorov, the alleged mastermind behind the operation, who was apprehended by Spanish authorities over cybercrimes spanning several countries.
Massive global operation evaded regulation
The ED investigation revealed that OctaFX operated through a distributed international network to evade oversight and launder funds.
Marketing was managed by entities in the British Virgin Islands, while servers and back-office operations were based in Spain.
Estonia, Georgia, Cyprus, Dubai, Singapore, and Russia were also implicated for handling payments, technical support, and fund transfers.
The platform posed as an online forex and crypto trading site but lacked authorization from the Reserve Bank of India, defrauding Indian investors of approximately $225 million between July 2022 and April 2023.
Complex layering through UPI and FDI routes
OctaFX collected investor funds via UPI systems and local bank transfers, which were then routed through dummy entities and mule accounts to conceal their origin.
Part of these funds re-entered India disguised as foreign direct investments (FDI), completing a circular laundering loop.
The ED has attached total assets worth $321 million, including 19 properties and a luxury yacht in Spain owned by Prozorov. This marks one of India’s largest crypto-related enforcement actions to date.
