A Special Court under the Prevention of Money Laundering Act (PMLA) has approved the Enforcement Directorate's (ED) request to seek legal assistance from Spain in connection with the ongoing investigation into the alleged OctaFX online forex trading fraud.

The order allows the agency to issue a Letter of Request (LoR) through the mutual legal assistance process, enabling investigators to pursue evidence and attached assets located outside India.

Court Clears International Legal Assistance

According to the ED, the court approved its application on 13 July.

The Letter of Request is intended to facilitate:

• Execution of existing attachment orders
• Collection of digital evidence
• Access to financial and property records
• Assistance from Spanish authorities
• Investigation of overseas entities linked to the case

The court reportedly found sufficient prima facie grounds to permit international cooperation at this stage of the investigation.

Alleged Online Forex Fraud Under Investigation

The investigation concerns the online forex trading platform OctaFX, which the ED alleges operated without authorisation in India.

According to the agency, the platform allegedly:

• Promised attractive investment returns
• Manipulated trading outcomes
• Displayed misleading trading data
• Used artificial slippage mechanisms
• Generated unlawful proceeds through investor transactions

These allegations remain under investigation and are subject to judicial proceedings.

Alleged Cross-Border Operational Structure

The ED alleges that the platform operated through an international corporate and technological network spanning multiple jurisdictions.

According to investigators, different components of the operation were reportedly associated with:

• Marketing entities
• Overseas payment infrastructure
• Technical support centres
• Hosting infrastructure
• Holding companies
• International financial intermediaries

Investigators are examining whether these entities formed part of an integrated structure for moving and concealing funds.

Spain Plays Key Role in Investigation

According to the ED, several important aspects of the investigation relate to Spain.

The agency alleges that:

• Certain operational entities were incorporated there.
• Digital infrastructure is located within Spain.
• Financial records relevant to the investigation remain overseas.
• Previously attached assets are situated within Spanish jurisdiction.

The newly approved legal assistance mechanism is intended to facilitate access to this evidence through official channels.

Alleged Movement of Investor Funds

According to the ED, investor deposits were allegedly collected through:

• UPI payments
• Domestic bank transfers

Investigators allege that funds were subsequently routed through:

• Multiple Indian entities
• Individual bank accounts
• Layered financial transactions
• Overseas transfers

The agency is examining whether shell companies and intermediary payment mechanisms were used to disguise the true nature of these transactions.

These allegations remain under investigation.

Overseas Entities Under Examination

The ED has identified several foreign-incorporated entities whose alleged roles are being examined as part of the investigation.

Investigators are assessing:

• Corporate records
• Banking documentation
• Digital infrastructure
• Cross-border financial transactions
• Beneficial ownership structures

The investigation continues with the assistance of foreign authorities.

Multiple Asset Attachment Orders Already Issued

According to the ED, three provisional attachment orders have been issued during the course of the investigation.

These reportedly include:

First Attachment

• Issued in December 2024
• 19 immovable properties
• Approximate value: ₹41.73 crore

Second Attachment

• Issued in July 2025
• Three movable assets
• Two immovable properties
• Approximate value: ₹131.45 crore

Third Attachment

• Issued in October 2025
• Cryptocurrency assets
• Approximate value: US$318 million (approximately ₹2,385 crore, as stated by investigators)

The ownership and legal status of these assets remain subject to the ongoing proceedings.

Arrest and Proposed Extradition

According to the ED, Pavel Aleksandrovich Prozorov, identified by investigators as a key accused in the case, was arrested in Spain during 2025 with cooperation between Indian and Spanish authorities.

The agency has indicated that it intends to pursue extradition proceedings.

Cross-border extradition processes typically involve judicial review and international legal procedures, and no timeline has been announced.

Scale of Alleged Fraud

According to the Enforcement Directorate:

• Alleged India-related proceeds exceeded ₹5,000 crore during the relevant period.

Some reports have separately referred to lower figures relating to specific entities or investor losses.

Investigators note that different estimates may represent different financial measures, including:

• Gross platform collections
• Alleged proceeds of crime
• Direct investor losses
• Assets identified during investigation

The final financial determination will depend upon evidence presented during judicial proceedings.

Assets Attached Cross ₹2,681 Crore

The ED stated that assets attached in the investigation now exceed:

• ₹2,681 crore

According to the agency, these include:

• Immovable property
• Cryptocurrency
• Luxury assets
• Other identified financial holdings

The attachment process remains subject to confirmation under applicable legal procedures.

Prosecution Proceedings Continue

The Enforcement Directorate has filed:

• A Prosecution Complaint
• A Supplementary Prosecution Complaint

against OctaFX and numerous other accused individuals and entities.

According to the agency, the Special PMLA Court has taken cognisance of these filings.

The criminal proceedings remain pending before the court.

Investigation Continues Across Jurisdictions

With judicial approval for international legal assistance now in place, investigators intend to continue tracing:

• Overseas assets
• Digital evidence
• Corporate records
• Banking information
• Beneficial ownership
• Cross-border financial flows

The findings of the investigation will ultimately be assessed through the judicial process.

Shunyatax Global Insight

Shunyatax Global says that large cross-border financial investigations increasingly depend on international legal cooperation rather than domestic enforcement alone. Mutual Legal Assistance Treaties (MLATs), Letters of Request and coordinated asset tracing enable investigators to obtain overseas records, execute attachment orders and identify beneficial ownership across jurisdictions. For businesses operating internationally, transparent corporate structures, proper documentation and regulatory compliance remain essential to minimise legal and enforcement risks.