The Enforcement Directorate (ED) on Wednesday questioned some famous TV and reality show actors, including Krystle Dsouza and Karan Wahi, in connection with a money laundering case against online forex trading platform OctaFX.
The agency had summoned actors Krystle Dsouza, Karan Wahi and Nia Sharma in connection with the promotion of the said platform.
The ED said the OctaFx online trading app and website were operating in India in association with India-based entity OctaFX India Private Limited.
The app OCTAFX and its website have not been authorised by RBI to deal in forex trading.
OctaFx also hired several Indian individuals working in Spain and Russia to operate the OctaFx trading platform and induce Indian citizens to invest in forex trading through OctaFx.
The Enforcement Directorate (ED) on Wednesday questioned some famous TV and reality show actors, including Krystle Dsouza and Karan Wahi, in connection with a money laundering case against online forex trading platform OctaFX.
The agency had summoned actors Krystle Dsouza, Karan Wahi and Nia Sharma in connection with the promotion of the said platform. Nia Sharma, who appeared in Big Boss, failed to appear before the ED.
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Earlier this year, the ED found that despite having no legal permission, the trading site was being operated in India. Upon investigation, the agency found that the platform was cheating investors in the guise of investing in forex and earning profits of more than Rs 500 crore.
In April, the ED conducted search operations at various locations in Mumbai, Chennai, Kolkata and Delhi as part of its probe. The ED had frozen Rs 2.7 crore in bank funds, and several illegal documents and digital devices were seized.
The ED probe stemmed from an FIR registered by Shivaji Nagar Police Station, Pune, against several persons for defrauding investors by promising high returns through forex trading.
The ED said the OctaFx online trading app and website were operating in India in association with India-based entity OctaFX India Private Limited. The app OCTAFX and its website have not been authorised by RBI to deal in forex trading.
The platform was widely promoted on social networking sites and followed referral-based incentive models for acquiring users to their platforms.
It has emerged in the investigation that multiple accounts of different Indian banks were being shown to investors on the app and website for collecting funds in the guise of facilitating forex trading.
The probe also revealed that OctaFx manipulated trade activities and information shown on its platform resulted in net loss to the traders.
The funds, after defrauding the investors, were transferred to multiple e-wallet accounts or to bank accounts of dummy entities. The firm earned a profit of more than Rs 500 crore from India.
A portion of these funds were layered through a web of complex transactions with the help of shell entities and remitted abroad to its related entities in the garb of bogus freight services, import of services, etc.
On the basis of the investigation conducted and proceeds of crime identified so far, assets worth Rs 35 crore in the form of cryptocurrencies, bank balances, and gold coins have been attached by the ED.
The search operations unveiled a network of chartered accountants and professionals who gave fake certificates of remittances and facilitated bank accounts for the layering of such funds.
The entire process of reflecting account numbers of dummy entities, managing the funds collected in these accounts and diversion of the same were managed and operated by the owner of OctaFx group entities based in Spain, Russia, Georgia and Dubai.
OctaFx also hired several Indian individuals working in Spain and Russia to operate the OctaFx trading platform and induce Indian citizens to invest in forex trading through OctaFx.
Published By: Abhishek De Published On: Jul 3, 2024
