Indian Authority Freezes INR 1.7 Billion Linked to Forex Scam QFX

Recently, India's Enforcement Directorate (ED) froze funds amounting to INR 1.7 billion in connection with forex scam company QFX Trade Ltd.

Last week, the ED launched an investigation against the QFX investment platform in several cities across India, Press Trust of India (PTI), the country's largest newswire, reported. Those under investigation include company executives Rajendra Sood, Lavish Kumar, Santosh Kumai and and Nawab Ali alias Lavish Chaudhary. Chaudhary is alleged to be the mastermind of the fraudulent company.

QFX has been accused of duping investors into participating in a fraudulent forex trading scheme. According to India's Enforcement Directorate, the fraudulent company operated an “unregulated” multi-level marketing scheme and promoted via websites, applications, and social media advertisements, which promised lucrative profits from forex trading.

The agency also found that the investment scheme offered by QFX was rebranded as YFX (Yorker Fx). However, the renamed one was still deceiving investors under the guise of forex trading. Apart from this, BotBro and TLC Coin were also fraudulent investment schemes operated and controlled by Chaudhary.

The fraudsters even had events in India and Dubai to attract investors.

QFX was also involved in money laundering activities. Fraudsters opened bank accounts in the names of shell companies, Npay Box Private Limited, Capter Money Solutions Private Limited, and Tiger Digital Services Private Limited, and used these accounts to receive funds from victims.

The ED froze nearly three dozen bank accounts containing INR 1.7 billion, and the suspects were unable to explain the source of the funds. In addition, the authority seized 9 million rupees in cash.