India Seizes $286M in Crypto from OctaFX Ponzi Scheme

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.

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.