OctaFX Controlling Shareholder Pavel Prozorov Arrested in Spain Amid International Forex Scam Probe

Key Shareholder Apprehended in Spain

Pavel Prozorov, identified as the controlling shareholder and alleged mastermind behind the online forex trading platform OctaFX, has been arrested in Spain by local police authorities. The arrest comes as part of a broader investigation into alleged cybercrimes and financial irregularities affecting multiple countries, including India.

The Indian Directorate of Enforcement (ED) confirmed the arrest, stating that Prozorov's apprehension is a significant development in their probe against OctaFX. The ED's investigation stems from a First Information Report (FIR) alleging that the platform defrauded investors by falsely promising high returns through its forex trading services.

Allegations of Unauthorized Operations and Money Laundering

According to the ED, OctaFX operated in India without the necessary authorization from the Reserve Bank of India (RBI). The agency alleges that the platform systematically duped Indian investors of approximately ₹1,875 crore (USD $250 million) between July 2022 and April 2023, generating illicit profits of around ₹800 crore (USD $107 million) during that period. Total estimated profits from Indian operations between 2019 and 2024 are believed to exceed ₹5,000 crore (USD $668 million).

The investigation further revealed that OctaFX allegedly manipulated trading operations through 'falsified candlestick charts and intentional slippage,' leading to consistent investor losses. Funds were reportedly collected from investors via UPI and local bank transfers, then routed through dummy Indian entities and mule accounts. These funds were subsequently layered through unauthorized payment aggregators and transferred abroad under the guise of fake imports of software and research and development services.

The laundered funds were allegedly directed to entities controlled by Pavel Prozorov in various countries, including:

• Spain
• Estonia
• Russia
• Hong Kong
• Singapore
• UAE
• United Kingdom

A portion of these illicit funds was reportedly reintroduced into India as foreign direct investment, and misappropriated funds were used for 'luxury consumption, property acquisitions, a luxury yacht, and global expansion of OctaFX.'

Asset Attachments and Regulatory Scrutiny

In connection with the ongoing probe, the ED has attached assets worth over ₹2,681 crore (USD $358 million). These assets include 19 immovable properties and a luxury yacht located in Spain, all owned by Prozorov. Additionally, cryptocurrency assets valued at approximately ₹2,385 crore (USD $318 million) have been provisionally attached.

OctaFX has faced regulatory actions in other jurisdictions as well. Earlier this year, the Cyprus financial regulator CySEC suspended Prozorov's voting rights for OctaFX's CIF licensed entity, Octa Markets Cyprus Ltd, citing that his influence was 'prejudicial to the sound and prudent management.' In June 2025, the websites of OctaFX and XM were blocked in Singapore. While OctaFX's European subsidiary is regulated by CySEC, the platform is not regulated by major financial bodies like the FCA (UK) or SEC (US), and has received warnings from the FCA.

OctaFX's Response

In response to the allegations, a representative for Octa stated that 'the global broker Octa is not involved in any legal proceedings in India' and 'is neither involved in nor has any information about Pavel Prozorov's affairs,' dismissing suggestions to the contrary as 'purely speculative.' OctaFX has also denied ownership or association with the properties seized in Spain.