ED Busts IPL-Linked Rs 800 Cr Forex Scam With A 'Cherry' On Top
This is the second instance of offshore property attachments in this case, as the directorate earlier attached 19 properties in Spain and other assets worth Rs 296 crore in connection with the forex scam.
According to sources, this marks the ED’s second offshore attachment in a money laundering case—the first involved properties in Dubai. Now, in the OctaFX case, the agency has seized assets abroad once again, including a luxury yacht and Spanish villas, which shows how it is now tightening its grip on cross-border financial fraud.
All the attached properties belonged to Pavel Prozorov, the alleged mastermind behind the unauthorised forex trading platform OctaFX, which was once promoted through the IPL ad campaigns and frequently endorsed by celebrities.
Mule accounts, dummy directors
The scale of deception is staggering. According to the ED, in just nine months, OctaFX reportedly generated over Rs 800 crore in illicit proceeds by duping thousands of Indian investors. Disguised as a legitimate forex broker, the platform lured unsuspecting victims with glittering advertisements on social media, even splashing its name across IPL campaigns.
However, behind the scenes, it manipulated trades, siphoned investor funds via mule accounts, and routed the money abroad through a maze of fake import invoices, bogus e-commerce fronts, dummy directors, and multiple unauthorised payment gateways.
The ED in a statement said, “The directorate initiated investigation on the basis of FIR registered by Shivaji Nagar PS, Pune against several individuals for defrauding investors by falsely promising high returns through the OctaFX forex trading platform. And the investigation revealed that OctaFX, an unauthorised forex broker promoted via IPL, social media and celebrities, laundered funds by collecting investor money through mule accounts in the names of fake e-commerce firms."
The ED’s investigation further revealed a web of shell companies and dummy directors, their bank accounts camouflaged under forged KYCs. These were used to funnel funds into Prozorov-controlled entities across Europe, Asia, and the Middle East—from Estonia and Russia to Hong Kong, Singapore, the UAE, and the UK, said a senior ED official.
“These shell firms, with dummy directors and manipulated KYCs, accessed payment gateways posing as legitimate merchants. Funds were routed through unauthorized payment aggregators and escrow accounts, adding layers to obscure ownership and transaction purpose. OctaFX deliberately changed its login URLs and web addresses to obscure its fraudulent operations from investors. The platform manipulated trades to cause significant investor losses while siphoning funds into e-wallets and accounts of fictitious entities," the ED said in the statement.
‘Castles in Spain’
Spain became Prozorov’s safe haven of choice, where he invested laundered money into a lavish lifestyle, including at least 19 properties worth Rs 296 crore.
But the sparkle dimmed as the ED closed in. With Cherry and his Spanish villas now under Indian authorities’ watch, the empire is crumbling. Two prosecution complaints have already been filed against OctaFX and 54 others, said a senior ED official.
Officials say the special court under PMLA has taken cognisance, and the noose is tightening. What was once paraded as a futuristic trading opportunity is now exposed as a transnational digital con, with ties to cricket glitz, celebrity endorsements, and a fleet of offshore indulgences.
Madhuparna Das, Associate Editor (policy) at CNN News 18, has been in journalism for nearly 14 years. She has extensively been covering politics, policy, crime and internal security issues. She has covered Naxa...Read More
Madhuparna Das, Associate Editor (policy) at CNN News 18, has been in journalism for nearly 14 years. She has extensively been covering politics, policy, crime and internal security issues. She has covered Naxa...
Read More
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News business ED Busts IPL-Linked Rs 800 Cr Forex Scam With A ‘Cherry’ On Top
