OctaFX’s Pavel Prozorov Arrested in Spain Over Cyber Crime
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India’s anti-money laundering agency, Enforcement Directorate, disclosed that Spanish authorities arrested Prozorov Pavel for his illegal involvement in cybercrimes.
An Octa staff member explained that Octa is an international broker and emphasized that the company is not involved in, nor aware of, the affairs of Prozorov Pavel. Despite this claim, regulatory sources have identified Prozorov Pavel as the ring leader behind the OctaFX platform, creating a point of contention between the company’s statements and ongoing investigations.
Earlier, Indian regulators found other assets belonging to Pavel. These include about 19 firm properties and a luxurious yacht. The assets are valued at about 2,681 crore rupees ($304.7 million).
In response to these findings, India’s Enforcement Directorate (ED) attachment rule halted the sale, gifting, or transfer of the listed assets. Asset owners can use them during the investigation.
OctaFX Accused Of Money Laundering
Records from the Indian Enforcement Directorate show OctaFX manipulated marketing operations. It used fake candlestick charts and wrong prices.
OctaFX established the IB scheme to deceive investors, offering hefty commissions for referring clients based on false trading activities. Octa claims to base its analysis on recent market information provided by international and officially verified prices.
According to the Enforcement Directorate, the accused systematically exploited Indian investors of over 1,875 crore rupees ($213 million) within three years.
The organization operated in India for six years, ending last year. Regulators calculate that its exploitation has exceeded 5,000 crore rupees. Indian agencies say much of the gains came from India and overseas countries.
The ED accused OctaFX of profiting from Indians illegally by using false payment aggregators sponsored by Prozorov across many countries. Indian enforcement said part of the looted money was reintroduced as foreign direct investment.
OctaFX Partnered With Other Offshore Entities For Fraud
The Indian Enforcement Directorate’s investigation said OctaFX worked with several offshore entities. These include Estonian entities that provided technical support, as well as Spanish entities, British Virgin Islands entities, and individuals.
Dubai-based entities and individuals directed Indian operations through Russian promoters and a Cyprus holding company. This holding company owns the Indian OctaFX entity. India’s financial crime agency also accused some Singapore-based companies of helping OctaFX move illegal money out of India.
An agency said OctaFX hired Indians in Spain and Russia to assist Indian customers. The global brand Octa recently disclosed its structure. Its brand is used by different companies in South Africa, Comoros, Cyprus, Saint Lucia, and Mauritius.
OctaFX has denied all accusations, claiming that it is only involved in legitimate businesses and never misled investors. “We firmly disagree with any accusations of money laundering. We never made promises of quick wealth or high returns,” an Octa representative said.
