August 6, 2024
By Anjali Kochhar
The Enforcement Directorate (ED) carried out its historic first-ever raids in Ladakh on Friday as a part of a large-scale money laundering probe connected to a case involving cryptocurrency fraud. Six locations in Leh, Jammu, and Sonipat were the focus of the raids, which exposed a scheme in which 2,508 investors allegedly lost more than Rs 7 crore (USD 834968 in deposits).
The operation focused on the cryptocurrency venture “Emollient Coin Limited,” which purportedly duped investors into pouring money into a fraudulent scheme. The case began with an FIR filed in Leh in March 2020, along with additional complaints in Jammu and Kashmir. The accused, A R Mir and his associates, reportedly defrauded investors who were lured with promises of high returns and investment doubling schemes.
Emollient Coin Limited, registered in London in September 2017, was directed by Henry Maxwell, a UK resident. The company attracted investors with enticing promises of returns up to 40% with a 10-month lock-in period. Funds were solicited through cash and bank transfers, with investors also enticed by a commission scheme that rewarded them for referring others to the business. The fraudulent activity involved a multi-level marketing scheme where participants earned up to 7% commission on investments made by their referrals.
Despite the high stakes, the investors saw no returns. Instead, the funds were allegedly misappropriated by the promoters to purchase land in Jammu. The Leh police conducted an inquiry that led to the sealing of the office of Emollient Coin Limited, located at the Anjuman Moin-Ul-complex in Leh. The investigation found that the company was “cheating many innocent individuals” by guaranteeing inflated returns.
The ED’s raids uncovered further details about the operation. Naresh Gullia and Channi Singh were identified as the company’s promoters in India. By March 2019, the company was deliberately dissolved, and Mir, along with Ajay Kumar Choudhary, transitioned into real estate, using the illicitly gained funds to acquire properties in Jammu.
The case highlights the emerging trend of cryptocurrency-related frauds and underscores the need for rigorous scrutiny of investment schemes in the digital currency sector. The ED’s actions mark a significant step in tackling financial crimes related to cryptocurrency in regions previously untouched by such high-profile investigations.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.