Mumbai: OctaFX, a global forex trading platform, has come under the scanner of international regulators for allegedly operating through shadow directorships, offshore entities, and undisclosed financial channels. Investigation by security agencies revealed that despite having formally named executives on record, the platform’s back-end operations were allegedly controlled by an unlisted figure Pavel Prozorov, a shadowy Russian national alleged to be the mastermind.

According to sources privy to confidential regulatory dossiers, George Pantzis and Anton Logvinsky are listed as executive directors of OctaFX’s global operations. The boardroom also includes George Xydas, Dimitris Christou and Prozorov who are listed as independent non-executive directors. But it's allegedly Pavel Prozorov who calls the shots.

Enforcement Directorate (ED) sources claimed that Prozorov leveraged his position to orchestrate clandestine operations through his close associate and absconding accused Anna Rudaia, along with several others across multiple countries. The back-end operations, officials allege, were quietly coordinated under layers of secrecy, allowing him to discreetly manage global financial movements without drawing regulatory attention.

When FPJ contacted, OctaFX Global stated it is under “no legal obligation to disclose the identities or roles of its internal personnel,” citing its status as a privately held company.

Investigations revealed that in 2018, Prozorov established OctaFX UK Limited, positioning it as a legitimate forex trading entity in the United Kingdom. The firm’s listed director was Subsetian Michel David Fobes, identified as a close associate of Prozorov. In February 2019, Prozorov himself was named a director, and the company claimed to possess a licence from the UK’s Financial Conduct Authority (FCA) to operate in the forex trading space.

OctaFX UK operated as a forex trading platform using the widely adopted MetaTrader 4 (MT4) system, offering users the ability to trade in foreign currencies, precious metals, cryptocurrencies, and stocks. The platform provided two main account types

# A Micro Account designed for beginners focusing on low-risk trades,

# and an ECN (Electronic Communication Network) Account tailored for high-volume, experienced traders.

Both account types provided leverage of up to 1:500 with floating spreads, enabling users to trade large volumes with minimal capital. For instance, trades worth Rs 5 lakh could be initiated with just Rs 1,000.

Additionally, ,The platform also introduced a swap-free Islamic account, aimed at clients adhering to religious prohibitions against interest.

However, despite its appealing features, OctaFX UK had come under the scanner of the UK’s Financial Conduct Authority (FCA). The regulator had flagged the firm’s high-leverage offerings as a potential risk to retail investors and had raised concerns about promotional strategies that downplayed the inherent dangers of forex trading.

Regulators also flagged the opaque separation between OctaFX UK and its global counterparts, and questioned the firm's lack of operational transparency.

Further scrutiny by the FCA uncovered that OctaFX UK had been servicing clients outside its authorised jurisdiction.

Meanwhile, its parent firms, registered in offshore tax havens such as Cyprus, were allegedly misrepresenting themselves as UK-regulated entities. A key concern for the regulator was the company’s opaque corporate structure marked by the absence of transparent executive leadership and a noticeable disconnect from OctaFX’s broader global operations.

These ambiguities raised red flags for the FCA and other international watchdogs, prompting deeper investigations into OctaFX’s governance and financial practices.

In 2022, due to mounting regulatory pressure and allegations of illegal forex trading, OctaFX UK had to cease its operations. That same year, the syndicate had changed the company’s name from OctaFX UK Ltd to Octa MARKETS UK LTD.

In an official communication with the FPJ, OctaFX Global distanced itself from OctaFX UK, Octa MARKETS UK LTD and Prozorov, denying any operational links.

Sources indicate that Prozorov remains untraceable, frequently changing identities and aliases to evade capture. Enforcement agencies in India, the UK, and several other jurisdictions have launched coordinated efforts involving red notices and cross-border intelligence sharing to track his movements and dismantle his network.