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.
• 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

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.