The Indian Directorate of Enforcement (ED) raided at least six locations on Friday, probing a money laundering case linked to a cryptocurrency scam known as Emollient Coin.
First Raid in Ladakh and Surrounding Regions
Reports indicate that this investigation represents the first raid ever conducted in the union territory of Ladakh. Additional searches took place in Jammu and Kashmir and Haryana.
Discovery of Fraudulent Activities
Officials found that over 2,500 investors had deposited more than $876,430 into the fraudulent crypto scheme. The company, Emollient Coin Limited, failed to return any funds. Instead, the main suspect, AR Mir, used the money to acquire real estate in Jammu before dissolving the company.
Origin of the Investigation
The case originated from a First Information Report (FIR) filed in March 2020 in Leh. The FIR followed numerous complaints against AR Mir and Ajay Kumar Choudhary. Emollient Coin, incorporated in 2017, had its office in London under the direction of Henry Maxwell.
Local Committee’s Findings
A committee established by the local district magistrate investigated Emollient Coin and its promoter, Mir. The committee discovered that the company deceived many individuals by promising to double their investments. Consequently, the committee sealed the company’s office.
Emollient Coin’s Operations
Tracxn describes Emollient Coin as offering decentralized blockchain storage. Its native coin, based on Proof-of-Work and Proof-of-Stake mechanisms, was intended for purchasing and renting storage spaces.
Misleading Investment Promises
According to ED officials, the accused lured individuals into investing in Emollient Coin through cash or bank transfers. They promised returns of up to 40% with a 10-month lock-in period. Additionally, the scheme included a referral program offering up to 7% commission on investments, employing multi-level marketing tactics.
Broader Context
This incident occurs amid recent challenges in India’s cryptocurrency sector, including a major hack of the crypto exchange WazirX. This hack resulted in a loss of $234 million. WazirX is reportedly seeking assistance from former partner Binance to support affected customers.
The post Indian Enforcement Directorate Conducts Raid Linked to Crypto Fraud Ring appeared first on Cryptonews.
