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ED Raids OctaFX: Indian Authorities Seize Broker’s $9.6M

ed-raids-octafx

Recently, the Enforcement Directorate (ED) froze OctaFX’s movable assets worth 9.6 million US dollars (INR 80 crores) for defrauding Indian customers. As per ED’s investigation, OctaFX hired Indian citizens in Spain and Russia to operate their brokerage platform illegally in the country.

These allegations also go on to accuse OctaFX of duping Indian clients on the pretext of earning higher returns with forex trading. According to ED, OctaFX website and mobile app are not directly registered under RBI (Reserve Bank Of India) – the central authority maintaining financial stability in the country. As one of the forex trading brokers in India, OctaFX clearly denied all ED allegations – with a key focus on the broker’s global reputation. Keep reading for a complete breakdown of ED seizing $9.6 million worth of assets for OctaFX broker in India.

ED Accuses OctaFX Of Money Laundering

After official complaints from Indian clients, ED raided OctaFX’s offices across multiple cities in the country – including Mumbai, Gurgaon, Kolkata, and Chennai. These complaints accused OctaFX of falsely promising high returns through trading in forex markets. In addition, complainants also accused OctaFX of manipulating forex trading activities on its platforms after collecting initial deposits – eventually leading to major losses.

ED’s statements further go onto explain that OctaFX generated over $115 million in profits through its operations in India. A portion of these earned profits are expected to be laundered outside the country through a network of financial experts. As per ED, these financial experts generated fake documents as a cover-up for the allegedly laundered money.

After ED’s raid, the Indian authority instantly froze OctaFX’s multiple bank accounts worth $324,000 – with additional assets adding up to $9.6 million.

OctaFX Denies All ED Allegations In India

As of July, 2024, OctaFX formally denied all money laundering allegations from Indian authorities. In an official statement, the international offshore CFD broker highlighted that the broker never appointed official representatives in India. Moreover, the statement explains the inherited risks associated with forex CFD trading. According to OctaFX, the brokerage firm never guaranteed 100% high returns from trading in forex markets. Instead, the company repeatedly underlined the requirement of skills, knowledge, and experience to earn bigger profits in forex.

OctaFX’s global representatives further stated:

“OctaFX continuously monitors its global partners and immediately addresses any misleading promotions that falsify any promises.”

As per OctaFX, many third-party impostors use the brokerage firm’s name, logo, and business details to collect money and defraud customers. Meanwhile, OctaFX still highlighted the broker’s active check on any entity illegally using the broker’s name to prevent fraudulent activities.

In an official release on OctaFX.com, the broker also highlighted:

“ED has banned another firm’s bank accounts. We are registered with a company name “Octa Markets Incorporated” in Octa Markets Incorporated. All our bank accounts are valid, and we have full access to these funds.”

Future Of OctaFX Forex Broker In India

With ED seizing OctaFX’s assets, many active clients are concerned about the broker’s future in India. The brokerage officially released an update on the official website – answering multiple customer queries. Here’s a quick breakdown of OctaFX’s response regarding future operations in India.

  1. OctaFX will continue to offer forex CFD trading services in India. Despite the ED’s raid, allegations, and strict actions – the brokerage firm is not planning to cease services in the country.
  2. Due to ongoing investigations and temporary account suspensions, Indian OctaFX clients may experience payout delays.
  3. OctaFX also highlighted the broker’s plan to officially file for registration with local regulators in India to create a transparent, safe, and stable trading experience for national clients.

Is CFD Trading Legal In India?

With ED’s allegations against OctaFX, Indian traders like you also want to know the legality of CFD trading in the country. In particular, CFD trading is illegal in India – with RBI repeatedly advising clients to avoid trading with forex CFD brokers. Meanwhile, the biggest forex brokers in the world operate under intentional regulations and offer offshore CFD trading accounts to Indian clients. Operating under international regulations, you can take advantage of the lowest spreads, higher leverage, and multi-instrument support to diversify your trading portfolio.

Picture of Chad Axelrod
Chad Axelrod

Chad Axelrod is a professional trader and market analyst with 15+ years of industry experience. Starting his career on Wall Street, he quickly realized his passion for writing and finance. Through his posts, reviews, and broker comparisons - he believes beginner and seasoned traders should make informed decisions while selecting a broker. At BrokerageToday.com, Chad prioritizes publishing unbiased and transparent reviews.

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