New Delhi [India], Enforcement Directorate (ED) on Wednesday recorded statements of television actors Karan Wahi and Krystle D'Souza as part of an ongoing investigation in the illegal online currency trading case through the OctaFx application, official sources said.
Officials aware of the development told ANI that the actors' statements are being recorded to "promote" the platform. The statements are registered under the Money Laundering Prevention Law.
The move comes after the federal agency's Mumbai Zonal Office carried out search operations on June 18 under the Prevention of Money Laundering Act (PMLA), 2002 at various locations in Mumbai, Chennai, Kolkata and Delhi as part of an ongoing investigation in the case of Online Forex Trading through international brokers, namely the OctaFx Trading app and the website www.octafx.com.
Officials said that during the course of search operations, bank funds to the tune of Rs 2.7 million were frozen and several incriminating documents and digital devices were found and seized by the ED.
The ED initiated the investigation on the basis of an FIR registered by the Shivaji Nagar Police Station, Pune, against several persons for being involved in showing false temptations of high returns and cheating people on the pretext of carrying out foreign exchange transactions at through the platform.
The Department of Education's investigation revealed that the OctaFx online trading application and website operate in India in association with the India-based entity OctaFx India Private Limited.
According to the ED, the app (OCTAFX) and its website have not been authorized by the RBI to operate in forex trading.
“This forex trading platform is widely promoted on social media sites and follows referral-based incentive models to acquire users for its platforms,” ED said in a statement.
"In the investigation it emerged that multiple accounts of different Indian banks were being shown to investors/users on the trading app OctaFx/www.octafx.com to collect funds on the pretext of facilitating forex trading. It is also revealed that OctaFx has manipulated trading activities and information displayed on their platform, ultimately resulting in a net loss to the traders, such accumulated funds, after defrauding these investors/users, were transferred to multiple e-wallet accounts or bank accounts of fictitious entities. "ED added.
“In this way, OctaFx India Pvt Ltd, OctaFx and their entities have misled investors in the guise of forex trading, thereby making a profit of over Rs 500 crore in the Indian region.”
A portion of these funds were channeled through a network of complex transactions with the help of shell entities and remitted abroad to their related entities under the guise of bogus transportation and importation services, the investigation agency said.
"Based on the investigation conducted and the PoC (Proceeds of Crime) identified so far, ED attached assets to the tune of Rs 35 crore in the form of cryptocurrencies, bank balances, gold coins, etc.," he said.
The search operations revealed a network of public accountants and professionals who provided false remittance certificates and provided bank accounts and companies for the stratification of said funds, the investigation agency said.
ED's investigation also revealed that the entire process of reflecting the account numbers of fictitious entities, managing the funds collected in these accounts and the diversion of the same "are being managed and operated by the owner of the OctaFx group entities based in Spain, Russia, Georgia and Dubai". .
Officials aware of the development told ANI that the actors' statements are being recorded to "promote" the platform. The statements are registered under the Money Laundering Prevention Law.
The move comes after the federal agency's Mumbai Zonal Office carried out search operations on June 18 under the Prevention of Money Laundering Act (PMLA), 2002 at various locations in Mumbai, Chennai, Kolkata and Delhi as part of an ongoing investigation in the case of Online Forex Trading through international brokers, namely the OctaFx Trading app and the website www.octafx.com.
Officials said that during the course of search operations, bank funds to the tune of Rs 2.7 million were frozen and several incriminating documents and digital devices were found and seized by the ED.
The ED initiated the investigation on the basis of an FIR registered by the Shivaji Nagar Police Station, Pune, against several persons for being involved in showing false temptations of high returns and cheating people on the pretext of carrying out foreign exchange transactions at through the platform.
The Department of Education's investigation revealed that the OctaFx online trading application and website operate in India in association with the India-based entity OctaFx India Private Limited.
According to the ED, the app (OCTAFX) and its website have not been authorized by the RBI to operate in forex trading.
“This forex trading platform is widely promoted on social media sites and follows referral-based incentive models to acquire users for its platforms,” ED said in a statement.
"In the investigation it emerged that multiple accounts of different Indian banks were being shown to investors/users on the trading app OctaFx/www.octafx.com to collect funds on the pretext of facilitating forex trading. It is also revealed that OctaFx has manipulated trading activities and information displayed on their platform, ultimately resulting in a net loss to the traders, such accumulated funds, after defrauding these investors/users, were transferred to multiple e-wallet accounts or bank accounts of fictitious entities. "ED added.
“In this way, OctaFx India Pvt Ltd, OctaFx and their entities have misled investors in the guise of forex trading, thereby making a profit of over Rs 500 crore in the Indian region.”
A portion of these funds were channeled through a network of complex transactions with the help of shell entities and remitted abroad to their related entities under the guise of bogus transportation and importation services, the investigation agency said.
"Based on the investigation conducted and the PoC (Proceeds of Crime) identified so far, ED attached assets to the tune of Rs 35 crore in the form of cryptocurrencies, bank balances, gold coins, etc.," he said.
The search operations revealed a network of public accountants and professionals who provided false remittance certificates and provided bank accounts and companies for the stratification of said funds, the investigation agency said.
ED's investigation also revealed that the entire process of reflecting the account numbers of fictitious entities, managing the funds collected in these accounts and the diversion of the same "are being managed and operated by the owner of the OctaFx group entities based in Spain, Russia, Georgia and Dubai". .
