ED seizes ₹1cr in crypto scam raids across north India
What's the story
The Enforcement Directorate (ED) has confiscated ₹1 crore in cash and several incriminating documents, during raids against a fraudulent cryptocurrency firm.
The operations were carried out on August 2 under the Prevention of Money Laundering Act (PMLA), in Leh, Jammu, and Sonipat.
This marks the first instance of such an investigation by the federal anti-money laundering agency in Ladakh.
Scam details
Cryptocurrency scam targeted innocent investors
The investigation is centered around a scam that exploited innocent people, including residents of Leh, with promises of doubling their investments within 10 months through a counterfeit cryptocurrency named Emollient Coin.
The fraudulent cryptocurrency was marketed by Naresh Gulia from Sonipat via a company called Emollient Coin Limited, established in the UK in September 2017.
Misuse
Accused used funds for personal expenses
The money laundering probe originated from an FIR lodged by the Jammu and Kashmir Police in March 2020.
The ED revealed that the funds collected through this deceptive business were laundered and utilized for personal expenses, as well as acquiring various immovable properties and assets by the accused.
During the raids, along with cash, several incriminating documents, property papers, and digital devices were also seized.
Investor loss
Over 2,500 investors duped
The investigation disclosed that Emollient Coin Limited defrauded over 2,500 investors of more than ₹7 crore worth of deposits. The accused used these funds to purchase real estate in Jammu after dissolving the company. The investors never received any returns or currency back.
Luring tactics
Firm lured investors with high returns
The deceptive cryptocurrency venture operated under the name "Emollient Coin Limited" and was incorporated in September 2017 with its registered office in London.
The company's director was a man named Henry Maxwell, residing in the UK capital.
The accused enticed individuals from Ladakh and other regions to invest in "Emollient Coin" using cash or bank transfers, promising returns up to 40% with a lock-in period of 10 months.