Global forex trading broker OctaFX is facing unprecedented challenges! Previously, the Indian Enforcement Agency (ED) accused its company of allegedly defrauding 8 billion rupees (RMB 680 million) from Indian investors through a Ponzi scheme. Later, investors from various countries accused it of withdrawal issues

OctaFX suspected of Ponzi scheme to raise 8 billion rupees in India

According to local media reports, the Indian Enforcement Agency (ED) has launched an investigation into money laundering schemes involving OctaFX. OctaFX is owned and managed by Russian national Pavel Prozorov. The indictment from the law enforcement agency shows that Prozorov is the mastermind behind the network, which aims to conceal the source of illegal funds and assist in money laundering through shell companies.

The Indian law enforcement agency has recently filed a second charge against Octafax India, its overseas operations company OctaMarkets, its founder Pavel Prozorov, OctaFX CEO Anna Rudaia responsible for India's business, and nine other accused individuals, as well as a total of 41 companies and entities.

The money laundering case of this ED originated from a lawsuit filed by the Shivaji Nagar Police Department against the application and its promoters, who allegedly lured numerous investors with high returns, promising to double their deposits within five months and triple them within eight months through OctaFX's forex trading. As a result, investors lost tens of millions of rupees.

In the same case, on July 22, 2024, the police conducted surprise inspections on the OctaFX trading application and website www.octafx.com in Mumbai, Kolkata, Delhi, and Gurgaon. According to law enforcement agencies, OctaFX has established several "shell" or false companies and used its bank accounts under the guise of promoting foreign exchange transactions.

According to local media reports, OctaFX has been attracting investors through active marketing and celebrity endorsements. The platform has hired some brokers to help people invest on the platform. They are known as "introducers" and earn lucrative returns by luring investors to the OctaFX platform. Even hiring top Bollywood actors to promote the platform and vigorously promoting it through online and social media advertising has successfully attracted numerous investors.

The platform is also accused of manipulating trading activities, resulting in significant net losses for investors, while transferring fraudulent funds to fake entities' electronic wallets and accounts. These funds were subsequently transferred abroad under the pretext of false imports and freight services.

OctaFX denies any inappropriate behavior

However, OctaFX denies any misconduct and emphasizes that the company has a good track record of performance.

Contrary to the company's claims, a recent investigation by the Indian law enforcement agency revealed that the forex trading platform OctaFX collected 8 billion rupees in criminal proceeds within just nine months of operating in India. However, the investigation is still ongoing to determine the exact amount of profit OctaFX has earned from its operations in India.

In addition, the OctaFX platform frequently changes its login URL and website address to intentionally conceal investors' fraudulent activities.

As for the follow-up, FX110 website will provide follow-up reports.

Investors' concerns about withdrawal

At the same time, many users have reported delays or even inability to withdraw funds on the OctaFX platform. According to the previous commitment of the OctaFX platform, investors' withdrawal requests usually arrive within 1-3 working days. However, recently, many investors have reported that their withdrawal requests have not been received for more than three working days, and the response given by the platform's customer service is "queued for processing". Given the negative information on various aspects of the platform, many users have expressed concerns about it.

A fellow trader revealed that he has been trading on OctaFX for a year and a half and has been quite normal. On December 12, 2024, he made a profit of $5537 in a transaction, so he applied to withdraw this profit (at this time, Huiyou's account was still losing money overall), but was unexpectedly rejected. Afterwards, Huiyou repeatedly applied for withdrawal and was rejected multiple times, and then his account was frozen for unknown reasons! The platform only sent an email stating that according to page 3.10 of the customer agreement, the company reserves the right to refuse to provide services to customers at any time, and the customer agrees that the company is not obligated to inform the customer of the reasons. What a domineering regulation! To this day, the Huiyou account is still frozen.

At present, the website www.octafx.com can still be opened normally. The website shows that the company is registered in Mauritius and has obtained an international brokerage and clearing house license number: T2023320， No other regulatory information was mentioned. Obviously, the entity itself does not have a valid regulatory license.

It is worth noting that the website clearly states that "the above-mentioned entities do not provide services to citizens of the European Union and the United States, as well as residents of Canada, the European Union, India, Iran, Myanmar, North Korea, Pakistan, the Philippines, the United Kingdom, and the United States." India is included, but it is clear that OctaFX not only operates in India, but also actively solicits customers, and its intentions are evident.

Given that the website www.octafx.com is still operating normally, this also means that more investors may face potential losses. As forex traders, we all know that there are various investment risks in the forex market, and investors need to carefully identify them. If there are any unusual issues with your trading platform, please remain vigilant and promptly stop losses upon discovering the problem. There are so many high-quality platforms, why bother taking risks with your hard-earned money?