ED Traces OctaFX’s Illegal Forex Profits to Crypto and Offshore Assets | File Photo
Mumbai: In the OctaFX forex trading scam, the Enforcement Directorate (ED) has revealed that the firm is preparing to relocate its server base from Spain following the asset attachment operations and action under the Mutual Legal Assistance Treaty (MLAT) in the European country. The ED sources said this is expected to have a direct impact on the platform’s global operations.
Currently, OctaFX operates in multiple countries, with servers in Spain, while its technical support team functions from Georgia. The company’s headquarters are based in Cyprus, with banking ties in Singapore and marketing teams stationed in Estonia and the British Virgin Islands (BVI), allowing it to navigate various jurisdictions.
OctaFX has been blacklisted in India for illegal forex trading. Financial regulators, including the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI), have prohibited the platform from operating.
According to official sources, OctaFX is completely banned in major financial markets, including the United States, the United Kingdom, the European Union, Iran, Myanmar, North Korea, and the Philippines. In the US, forex trading is strictly regulated by the Commodity Futures Trading Commission and the National Futures Association to ensure market transparency and protect investors from fraudulent schemes.
Similarly, the United Kingdom’s Financial Conduct Authority enforces stringent rules to maintain financial integrity, making it nearly impossible for OctaFX to operate. In the European Union, the Markets in Financial Instruments Directive (MiFID II) imposes strict transparency and investor protection standards, leading to a regulatory crackdown on OctaFX across European jurisdictions.
The firm has provided official clarification on the rationale behind its operational limitations in certain countries. In an official response, the broker has affirmed that its decision to prohibit services in specific regions is influenced by a combination of regulatory frameworks, legal considerations, and potential risk factors, rather than being solely dictated by restrictions imposed.
In-depth probe into OctaFX’s alleged money laundering network and foreign asset acquisitions reveal suspected schemes and funds received from India to create movable and immovable assets in another region.
The recently identified 19 properties in Barcelona (Spain), valued at nearly Rs41.73 crore, are seen as proceeds of crime. However, OctaFX has refuted the allegations. In an official statement, the company denied any ownership or association with the seized properties.
“Contrary to the allegations regarding assets in Spain, we claim that Octa broker has no ownership of, or association with, any properties attached or investigated by the Spanish authorities. We do not provide services in Spain, as is explicitly stated in the customer agreement. Consequently, none of the properties were attached or seized in Spain, especially by the ED, which is an Indian local authority. Moreover, we have not received any legal communications from the Spanish government concerning the attachment,” OctaFX stated.
