India’s Enforcement Directorate cracks down on $890k Emoillent crypto scam

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As a seasoned analyst with years of experience under my belt, I’ve seen more than my fair share of financial scams, and unfortunately, India seems to be a hotbed for such activities, especially in the cryptocurrency space. The latest saga involving Emollient Coin is yet another example of how unsuspecting investors can be lured into schemes that promise unrealistic returns.

The Indian Enforcement Directorate is carrying out an investigation on the creators of Emoillent Coin, a questionable digital currency, due to its promises of high earnings to investors.

As an analyst, I’ve gathered information from local news sources indicating that around 2,508 investors in India collectively lost approximately 7,343,6267 Indian Rupees (INR), which is roughly equivalent to $890,000 USD. This loss occurred due to their investments in cryptocurrencies during a period of heightened market hype.

Under the company name “Emollient Coin Limited,” a counterfeit currency was introduced, promising returns as high as 40% on investments held for ten months. To lure unsuspecting individuals, they also introduced a tiered referral program, offering up to 7% in commissions for each new user brought in.

In many instances, referral programs like these are characteristic of pyramid schemes associated with multi-level marketing frauds. The deception lies in repeatedly enlisting new members under the pretext of investments in a seemingly lucrative venture that is actually non-existent. Once enough individuals join, the perpetrators vanish with the accumulated funds.

When it comes to Emollient Coin, those responsible for the scheme allegedly utilized a mobile app as their primary tool. Money was requested in various ways such as bank transfers, transactions through cryptocurrency platforms, and even face-to-face cash payments. It’s said that these scammers exploited the widespread acceptance of Bitcoin (BTC) to persuade users into making investments.

Henry Maxwell was in charge of Emollient Coin Limited, a company that had an office locally but deceptively claimed to be headquartered in London. From 2017 to 2019, this firm ran a scam, where it intentionally dissolved after taking money from users, resulting in losses for them. The Enforcement Directorate accuses the scammers of using the stolen funds to buy land properties.

In response to numerous grievances lodged in 2020 with the Additional District Magistrate in the northern Indian town of Leh (where the fraud took place), India’s police force initiated an investigation by conducting a search operation.

Three individuals, including A R Mir, Ajay Kumar Choudhary, and two other key figures in the company, stand accused of deceiving many people financially. As per the Prevention of Money Laundering Act, the Economic Division has taken control of offices and assets associated with this fraudulent scheme.

Indians plagued by crypto scams

Over the past few years, I’ve noticed a troubling trend of fraudulent activities in the crypto space here in India. Just recently, my attention was drawn to the Max crypto trading scam that was uncovered in Hyderabad late last month. This Ponzi scheme allegedly swindled at least 50 investors out of approximately $200,000. I can’t help but feel concerned about such incidents, and I hope these investigations will lead to the recovery of the lost funds and bring those responsible to justice.

In the same month, the ED seized approximately $3.83 million in cash and related assets linked to the Highrich online group, a suspected entity involved in a scheme similar to crypto investments. Previously, during the preceding month, the agency had taken action against the “E-nugget” scam, which had amassed more than $10 million from its victims by posing as a gaming platform.

Previously, India’s Financial Intelligence Unit (FIU) has voiced worries about the possible abuse of cryptocurrency platforms for money laundering activities. As a result, crypto service providers operating within the country must register with FIU-India and adhere to the Prevention of Money Laundering Act (PMLA).

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2024-08-03 01:41