OctaFX Shareholder Pavel Prozorov Arrested in Spain, Indian Authorities Announce

Pavel Prozorov, identified as the controlling shareholder of the online trading platform OctaFX, has been arrested in Spain, according to India's Directorate of Enforcement (ED). The arrest is connected to an ongoing investigation by the ED into OctaFX for allegedly defrauding investors.

In a recent announcement, the ED stated it had issued a provisional attachment order for movable properties, primarily cryptocurrencies, valued at approximately Rs. 2,385 Crore (USD $318 million). This brings the total attached assets in the case to over Rs. 2,681 Crore ($358 million), which the ED says includes 19 immovable properties and a luxury yacht in Spain owned by Prozorov.

The Indian agency's probe alleges that OctaFX operated as an unauthorized forex trading platform, promising high returns in what resembled a "typical Ponzi scheme." The ED claims the platform, which operated without permission from the Reserve Bank of India (RBI), systematically duped Indian investors.

According to the investigation, OctaFX allegedly used a distributed global network to evade regulatory scrutiny and layer illicit funds. The ED detailed a structure involving entities and personnel in Spain, Estonia, Georgia, Cyprus, Dubai, and Singapore to manage operations, payments, and technical support, and to launder funds abroad.

The ED also alleged that the platform manipulated trading operations using "falsified candlestick charts and deliberate slippage" to ensure investor losses. Funds were reportedly collected from investors via local bank transfers and UPI, then routed through dummy entities and mule accounts before being transferred abroad under the guise of fake software import payments.

This development follows other regulatory actions against the platform. Earlier in 2025, the Cyprus Securities and Exchange Commission (CySEC) suspended Prozorov's voting rights in OctaFX's licensed entity in the country, stating his influence was "prejudicial to the sound and prudent management" of the firm. In June 2025, OctaFX's website was blocked by authorities in Singapore.

The ED has filed prosecution complaints against OctaFX and 54 other accused parties, and the investigation is ongoing.