CBI Probes ₹5B QFX Scam: Fake SEBI Certification, Shell Entities, Dubai Assets Frozen, Political Ties Uncovered

The Central Bureau of Investigation (CBI) of India has taken over the probe into QFX Trade, a ₹5 billion forex scam allegedly masterminded by absconding mastermind Lavish Chaudhary. The scheme targeted farmers, teachers, and retirees across 11 states, luring them with promises of “200% monthly returns” through forex and cryptocurrency investments.

The scam unraveled in January 2025 when thousands of investors reported frozen withdrawals at Muzaffarnagar police stations. In February, the Enforcement Directorate (ED) froze ₹ 1.7 billion in connection with the scam.

The latest investigations revealed QFX as a sophisticated Ponzi scheme, involving doctored Bollywood celebrity endorsements and political figures hired to lend legitimacy at luxury seminars in Delhi’s five-star hotels.

Fake SEBI Certification

The QFX platform displayed fabricated growth, while investor funds were diverted into 12 shell companies, including Stella Mercantile Ltd. and Quantum Forex Solutions. Victims were recommended fake “SEBI-certified” portfolios through a cloned SEBI site and shown manipulated testimonials at so-called “wealth summits.”

Shell Entities and Dubai Assets Frozen

The Enforcement Directorate (ED) has traced ₹3.87 billion to offshore accounts in Singapore and Mauritius, with hawala channels funneling portions to Dubai and moving funds through Hong Kong and Seychelles. UAE authorities have frozen Chaudhary’s assets, including a ₹870 million villa and three bank accounts totaling ₹1.2 billion. In India, the ED seized a ₹180 million farmhouse, luxury vehicles, and 92 Bitcoins from crypto wallets.

Political Ties

Police allege ₹92 million was paid to politicians for endorsements. Four legislators have been summoned, and the CBI is reviewing bank records for potential kickbacks.

Other Tactics

The scheme also used a recruitment pyramid tactic, with agents earning 25% commissions for onboarding new investors. Allegedly, withdrawal requests triggered threats unless additional “taxes” were paid, and “branch managers” worked from co-working spaces with no infrastructure. 

Interpol has issued a Red Corner Notice for Chaudhary, last seen near Dubai’s Burj Khalifa. Seven QFX employees, including “relationship managers” who targeted vulnerable communities, are in judicial custody.

Authorities have identified over 8,300 victims, with average losses of ₹600,000 each. Many sold property or took loans after attending QFX’s seminars, where Chaudhary flaunted fake awards and testimonials.

Persistent gaps in India’s financial oversight continue to facilitate unauthorized forex trading schemes. Recent major exposures, including “Unityfxlive” and “VIP Trade”, further highlight the urgent need for regulatory reform and investor vigilance.