India’s law enforcement agency has launched a manhunt against the founders of Emoillent Coin, a dubious cryptocurrency that promised investors lucrative returns.
Reports from local media He claims 2,508 investors in India have lost a total of Rs 7,343,6267 (around $890,000) in hopes of making profits from the cryptocurrency hype.
The fake currency, which was launched under the brand name “Emollient Coin Limited,” attracted users by offering returns of up to 40% in exchange for securing their investments for ten months. To further attract victims, the company promoted a multi-level referral system that rewarded up to 7% in commissions for bringing in more users.
Referral schemes of this type are typical of multi-level marketing scams. The scam is based on constantly recruiting members in the name of investing in a promising project that does not exist. When enough participants participate, the scammers disappear with the money.
In the case of Emollient Coin, the perpetrators operated the scheme using a mobile app. Funds were requested via bank transfers, cryptocurrency exchanges, and even direct cash payments. Reports allege that the scammers exploited the popularity of Bitcoin (BTC) to convince users to invest.
Emollient Coin Limited, which had a local office but falsely claimed to be based in London, was run by a man named Henry Maxwell. The scam – which ran from 2017 to 2019 – involved the accused deliberately dissolving the fraudulent company, causing users to incur losses. The Enforcement Directorate alleges that the fraudsters used the stolen funds to acquire property assets.
In response to multiple complaints filed in 2020 with the Additional District Magistrate of Leh, a town in northern India where the scam was operating, India’s law enforcement agency launched a search operation.
The accused – AR Mir, Ajay Kumar Choudhary and two other promoters – face charges of defrauding a large number of individuals. Under the Prevention of Money Laundering Act, the Anti-Money Laundering Department has seized offices and assets linked to the scheme.
Indians suffer from cryptocurrency scams
India has seen several cryptocurrency scams over the past few years. In late June, law enforcement authorities in Hyderabad launched an investigation into a cryptocurrency Ponzi scheme that had swindled at least 50 investors out of $200,000.
That same month, the DEA froze $3.83 million in cash and other assets linked to the online group Highrich, which is suspected of running a similar scheme called cryptocurrency investments. The previous month, the agency cracked down on the “E-nugget” scam, which siphoned off more than $10 million from its victims while disguising itself as a gaming platform.
India’s Financial Intelligence Unit (FIU) had earlier expressed concerns about the misuse of cryptocurrency exchanges for money laundering. Cryptocurrency-based service providers in the country are required to register with FIU and comply with the PMLA.
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