PMLA Court Grants ED Permission to Seek Spanish Authorities' Help in Massive Forex Fraud Probe

PMLA Court Grants ED Permission to Seek Spanish Authorities' Help in Massive Forex Fraud Probe​

A special court under the Prevention of Money Laundering Act (PMLA) has authorized a Letter of Request to Spain, providing the Enforcement Directorate (ED) with a critical legal gateway to enforce attachment orders abroad.

The ruling facilitates the execution of provisional attachment orders and the collection of vital evidence regarding the money laundering probe into the OctaFX Group. The investigation centers on Pavel Aleksandrovich Prozorov, a Russian national currently residing in Barcelona, who is alleged to have controlled the group's operational structure.

Judicial Approval for International Legal Assistance​

The PMLA court approved the ED's application to seek mutual legal assistance from the Kingdom of Spain to secure records and documents located outside Indian jurisdiction. The agency successfully argued that international cooperation is essential to seize assets and gather evidence relevant to the fraud network.

Judge DD Kurulkar noted that there were prima facie grounds to grant the request for legal assistance. The court stated that the issuance of a Letter of Request was necessary for the service of orders involving properties, records, and documents situated in Spain.

Identifying Offshore Assets and Shell Companies​

The ED informed the court that its investigation identified several entities incorporated in Spain, specifically Amber Soluciones and Mercats City SL, which allegedly played a significant role in the OctaFX network. The agency claims these entities served as part of a mechanism to generate, layer, and integrate proceeds of crime.

According to the Enforcement Directorate, key digital infrastructure, servers, and financial records are housed within Spain. The agency further identified multiple movable and immovable assets in Spain that it alleges were beneficially owned or controlled by Prozorov and his linked entities.

Breakdown of Attached Assets and Cryptocurrency Holdings​

The court's order highlights three specific provisional attachment orders issued by the ED against assets located in Spain. The first, issued on December 3, 2024, covers 19 immovable properties valued at approximately Rs 41.73 crore.

A second order dated July 3, 2025, covers five properties (three movable and two immovable) with an aggregate value of around Rs 131.45 crore. The third order, issued on September 19, 2025, pertains to cryptocurrency assets valued at approximately USD 270.7 million, which are currently under the control of Spanish police authorities.

Origins of the OctaFX Money Laundering Case​

The investigation began after a charge sheet was filed on March 7, 2022, following a police case registered in Pune based on investor complaints. The ED subsequently filed prosecution complaints before the special PMLA court regarding the unauthorized forex trading platform.

The agency alleges that OctaFX cheated Indian investors by promising high returns and manipulating trading outcomes. It is further alleged that the group routed proceeds abroad using shell companies and fake service imports to evade domestic regulations.

Scale of Profits and Seized Assets​

The Enforcement Directorate claims that OctaFX generated profits exceeding Rs. 5,000 crore from its operations in India between 2019 and 2024. This massive scale of operation has led to a significant crackdown on the group's financial infrastructure.

To date, the ED has provisionally attached cryptocurrencies worth about Rs. 2,385 crore under the PMLA. This brings the total value of attached assets in the OctaFX case to over Rs. 2,681 crore as the agency continues its pursuit of the alleged fraud network.