19th October 2025 – India’s Enforcement Directorate (ED) has seized $286 million worth of cryptocurrency as part of an ongoing money laundering probe into OctaFX, a global forex and crypto trading platform accused of running a massive Ponzi scheme.
Key Takeaways
India’s Enforcement Directorate seized $286 million in crypto while investigating OctaFX’s alleged $225 million fraud scheme.
Spanish authorities arrested OctaFX mastermind Pavel Prozorov, who routed illicit funds across Estonia, the UK, UAE, and more.
OctaFX used UPI and dummy Indian entities to collect money, then layered it globally and funneled it back into India as FDI.
Authorities also froze $321 million in total assets, including a luxury yacht and 19 properties linked to the alleged scheme.
The agency also announced the arrest of Pavel Prozorov, the alleged mastermind behind the operation. Spanish authorities detained Prozorov based on his role in cybercrimes spanning multiple countries.
A Global Ponzi Operation
The ED found that OctaFX defrauded Indian investors of $225 million between July 2022 and April 2023. The platform operated without regulatory approval from the Reserve Bank of India, presenting itself as a legitimate provider of forex, commodities, and crypto trading services.
Between 2019 and 2024, the network reportedly generated $96 million in profits through a multi-country operation designed to evade legal oversight.
A Distributed Scheme to Hide Funds
Investigators uncovered a complex web of international entities used to mask and move illicit funds:
British Virgin Islands entities handled marketing.
Spanish firms managed servers and back-office operations.
Estonian companies processed payments.
Georgian operations provided technical support.
A Cyprus-based firm acted as the holding entity for India.
Dubai-based firms, operated by Russian nationals, oversaw Indian activities.
Singapore entities helped export fake services to launder money abroad.
Funds collected in India were routed through UPI and local bank transfers, then pushed through dummy firms and personal accounts. Part of this money was reintroduced into India as foreign direct investment, obscuring its origins.
Largest Seizures Ever In Crypto
Largest Asset Seizures from Crypto Ponzi & Fraud Schemes
Case
Details
Seized Assets
Chen Zhi / Prince Holding Group
Cambodian crypto scam empire using forced labor and pig-butchering schemes. DOJ filed civil forfeiture for crypto tied to Chen Zhi, involving human trafficking and investment fraud.
U.S. DOJ seized funds tied to pig-butchering and romance-based crypto investment scams. Victims were tricked into using fake platforms.
$225.3 million in cryptocurrency (June 2025)
BitConnect
Global Ponzi scheme promising returns via a crypto lending platform. U.S. and global regulators pursued operators and promoters.
$56 million seized in 2021 from one promoter (Glenn Arcaro)
PlusToken
One of the earliest massive crypto Ponzi schemes out of China. Operated as a wallet promising high returns.
$4.2 billion in crypto seized by Chinese authorities (2020)
WoToken
Linked to PlusToken, another app-based Ponzi scam targeting Asian investors. Promised profits via “arbitrage trading bots.”
~$1 billion in crypto losses; seizures not publicly disclosed in detail
Major Seizures and Attached Assets
The ED has now attached a total of $321 million in assets, including:
$286 million in cryptocurrency
19 immovable properties
A luxury yacht in Spain owned by Prozorov
These actions make it one of India’s largest crypto-related crackdowns under anti-money laundering laws.
Frequently Asked Questions
What is OctaFX accused of?
OctaFX allegedly defrauded Indian investors of $225 million by operating an unauthorized forex and crypto platform without RBI approval.
Who is Pavel Prozorov?
Pavel Prozorov is the alleged mastermind behind the OctaFX scheme. Spanish police arrested him for cybercrimes tied to global money laundering.
How did OctaFX move the money?
They collected funds via UPI and local bank accounts, layered them through shell companies, and reintroduced the funds into India as fake FDI.
What assets has ED seized so far?
ED has frozen $321 million in total, including $286M in crypto, 19 properties, and a luxury yacht in Spain linked to Prozorov.
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