ED Uncovers OctaFX’s Use of BI Software to Mask ₹800-Crore Forex Scam | File Photo
Mumbai: The Enforcement Directorate’s (ED) ongoing investigation into the activities of OctaFX has reportedly unearthed “critical evidence” highlighting that the allegedly illegal forex trading platform extensively used data visualisation and business intelligence (BI) software Tableau for its data analytics and visualization operations. Investigators have revealed that the company relied on Tableau to monitor large-scale financial transactions, track customer behavior, and manage risk assessments in real-time.
According to ED Prosecution Complaint (PC), the revelation came to light during the forensic extraction of digital evidence from the mobile phone of Ankit Sharma, a former employee of OctaFX, in Mumbai. According to officials, Tableau’s dashboards enabled OctaFX to analyse client trading patterns, geographical fund flows, and marketing campaign performance. The platform utilised the software to streamline internal reporting and visualise complex datasets related to deposits, withdrawals, and high-leverage trades. ED suspects that OctaFX used Tableau software to create an illusion of healthy, legitimate financial operations, while concealing irregularities and potentially facilitating illegal forex trading activities in violation of Indian regulations.
According to the PC, forensic examination of a Galaxy S22 Ultra mobile phone belonging to Sharma along with his statement recorded under the Prevention of Money Laundering Act (PMLA), revealed that the company heavily relied on Tableau software to visualise and analyse profit data across various countries, with a particular focus on India. The PC stated that the use of Tableau enabled OctaFX to systematically monitor its financial performance, including profits earned from Indian operations, despite the platform lacking authorisation to operate under Indian regulations.
Officials suspect that OctaFX may have utilised Tableau’s advanced data visualisation capabilities to monitor financial growth, track customer transactions, and potentially structure fund movements in a manner aimed at evading regulatory detection. However, they clarified that Tableau is a legitimate software tool, and any misuse is attributable solely to the user’s intent, not the software itself.
In an official response OctaFX said that details such as the software used, profit figures, and internal documents constitute proprietary information. We categorically deny the baseless allegations regarding the use of any data visualization platform to manipulate or misrepresent financial health. Given the sensitive nature of such information, it is contradictory to suggest that Octa would openly misuse it to mislead investors or stakeholders.
During the investigation the ED recovered one of OctaFX’s Tableau-generated regional metrics reports pertaining to India for the financial year 2022-2023. The report indicated clear monthly deposits, excluding withdrawals, ranging between USD 5 million to USD 14 million, suggesting large-scale fund inflow.
Further analysis of this report revealed that, within a span of just nine months, from July 2022 to April 2023, OctaFX generated a staggering profit of approximately Rs 800 crores solely from its Indian operations. Officials termed this amount as proceeds of crime under Section 2(1)(u) of the PMLA, 2002, since OctaFX’s activities violated the Foreign Exchange Management Act (FEMA) guidelines.
During his questioning, Sharma decoded several technical terminologies and internal strategies outlined in the regional metrics report, which allowed ED officials to understand fluctuations in month-wise illegal forex earnings and the platform’s modus operandi. Notably, a detailed comparison of OctaFX’s operations in March and April 2023 revealed unusual financial patterns.
The document contains a detailed comparison of platform statistics for April 2023 and March 2023. ED has found significant financial irregularities in the operations of the illegal forex trading platform. The agency’s findings reveal an unusual pattern in the company’s profits and trading activities between March and April 2023.
According to the PC, OctaFX reported a profit of approximately USD 14 million in March 2023 under the “Clear Deposit” category, which denotes the profit before expenses. However, in April 2023, this figure dropped sharply to around USD 7.8 million. Alongside this decline, there was also a notable reduction in the number of new user registrations, trading activities, and total deposits made by clients in April compared to March.
Investigators suspect that these fluctuations were part of a systematic strategy. They indicated that sometimes such types of companies show higher profits at the end of a financial year to balance accounting books and claim tax benefits. Subsequently, they may show reduced profits or artificial losses in the next month to lower tax liabilities.
Such types of patterns clearly indicate that just like OctaFX attempted to show fake losses and reduced profits, many companies may attempt to divert their funds abroad through illegal channels such as hawala or cryptocurrencies. This is often done to avoid detection of money laundering activities. The Agency believes that by manipulating trading data, the company misled investors and obscured the true nature of its financial activities.
In its response, OctaFX said, “We strongly deny any claims of money laundering via ‘fund transferring abroad’ or engaging in practices that disadvantage traders. We neither promise our clients quick riches with unrealistic returns nor run forex trading schemes with trade manipulation. To protect our clients, we warn them regarding the risks posed by CFD trading and work with top-tier market liquidity providers to ensure a safe trading experience.”
