Exclusive: OctaFX Calls Allegations by India “Unsubstantiated” as Authorities Seize $9.6M

Amid actions by the Indian authorities, OctaFX has shared an exclusive statement with Finance Magnates, calling the “reproof… [of] allegations of ‘false promises of high returns’ unsubstantiated,” adding that “OctaFX doesn't have individuals acting as the company's official representatives in any country or region.”

Actions against OctaFX in India

The statements came as the Indian Enforcement Directorate (ED) searched various OctaFX office locations in the country and seized INR 804.3 million (more than US$9.6 million), according to a report by the local news outlet India Today. The broker's offices in the country were also raided earlier this year.

The report further outlined that the ED searched office spaces located in the cities of Mumbai, Kolkata, Delhi, and Gurgaon under local anti-money laundering laws.

The Indian authorities further linked the management of the local operations of OctaFX with the owners of the company's group entities in Russia, Spain, Georgia, and Dubai. The platform has been accused of hiring several Indian citizens abroad to operate its platform, and the authorities are now moving to question them, Hindustan Times reported.

The troubles of OctaFX in the country started as several individuals filed a police complaint in the city of Pune against the platform for alleged cheating with promises of high returns.

“We never promised that trading with Octa would bring quick and immense returns,” stated OctaFX. “On the contrary, we have consistently underlined that Forex trading requires a knowledgeable and conscious approach, which we help to develop through educational materials publicly available on our website, YouTube channel, and the Octa app.”

A Profitable Business

According to the Indian authorities, OctaFX earned more than INR 10 billion (about US$119.5 million) from its operations in India. A portion of it has been funnelled to overseas entities, layered within a web of complex transactions. Furthermore, the allegations include that the forex trading platform funnelled some of its ill-gotten funds to locally regulated funds to show them as legitimate.

The Indian authorities additionally highlighted that OctaFX used entities registered in the British Virgin Islands and Estonia to transfer funds for running promotional activities.

It should be noted that contracts for differences (CFDs) trading is not regulated in India. Although CFDs trading is not explicitly banned in the country, the Indian central bank has issued multiple warnings against unregulated FX and CFDs trading. It has also published a list naming dozens of brokers offering services in the country without any license.

“Even though we understand that Forex trading is limited in India and some brokers do not fall under local regulations, it is important to note that Octa is a global and licensed broker,” the statement continued. “We apply the best global practices to prevent malicious activities and money laundering and secure our customers' funds.”

OctaFX's Full Response

OctaFX provided the following statement to Finance Magnates:

The reproof related to the Pune case and allegations of ‘false promises of high returns’ are unsubstantiated, as Octa (formerly OctaFX) doesn't have individuals acting as the company's official representatives in any country or region.

Moreover, we never promised that trading with Octa would bring quick and immense returns. On the contrary, we have consistently underlined that Forex trading requires a knowledgeable and conscious approach, which we help to develop through educational materials publicly available on our website, YouTube channel, and the Octa app.

Payout guarantees or promises are restricted to various promotions initiated internally. We explicitly demand our partners to act in a truthful and sincere manner and inform our clients about the risks of Forex trading prior to opening a real trading account (within the Introducing Broker Agreement, in particular).

Octa rigorously monitors the public activity of its partners and promptly addresses any misleading or false statements whenever and wherever they appear. However, there have been numerous instances where imposters have attempted to deceive people by using our brand name and logo to solicit money. We are constantly tracking any illegal use of our brand name and doing our best to prevent and resolve such incidents. Still, we certainly cannot be held responsible for the actions of offenders.

Even though we understand that Forex trading is limited in India and some brokers do not fall under local regulations, it is important to note that Octa is a global and licensed broker. We apply the best global practices to prevent malicious activities and money laundering and secure our customers' funds.

The Octa team ensures safe and stable trading performance and payment processing for all Octa traders.