ed-conducts-first-ever-crypto-fraud-raid-in-ladakh

In its ongoing crackdown on black money, the Enforcement Directorate (ED) conducted searches at various places in Ladakh, Jammu and Kashmir and Haryana on Friday in connection with a money laundering investigation tied to a crypto-currency fraud case that has cost investors more than ₹7 crore in deposits, officials have said.

 

The ED's zonal office carried out raids at six locations, including Leh town in Ladakh, Jammu in Jammu and Kashmir (J-K), and Sonipat in Haryana. The raids are part of an investigation against a person named AR Mir and others.

 

Authorities allege that 2,508 investors deposited over Rs 7.34 crore in a fraudulent cryptocurrency scheme named Emollient Coin Limited.

 

Investors did not receive any returns or their original investments, and the funds were allegedly laundered by the business’s promoters to purchase land assets in Jammu.

 

The moneylaundering case originated from an FIR registered in Leh in March 2020 and other complaints filed in J-K against Mir and Ajay Kumar Choudhary.

 

Leh police, in their FIR, stated that a committee formed by the local district magistrate conducted an inquiry against Mir and his agents, who operated the fraudulent cryptocurrency business from an office located at the Anjuman Moin-Ul complex, opposite SNM Hospital in Leh.

 

During the inquiry, the office was sealed. The reason, according to the FIR, was "Cheating many innocent individuals by assuring them to double their investment."

 

The accused allegedly enticed people in Ladakh and other areas to purchase "Emollient Coin" using cash or bank transfers, ED officials said.

 

Depositors were also deceived with promises of up to 40 per cent returns with a lock-in period of 10 months, the probe agency added.

 

The ED discovered that investors were offered a commission of up to 7 per cent for referring others, creating a multi-level marketing chain. Overall, 2,508 people invested Rs 7,34,36,267 in the scheme.

 

The company, incorporated in September 2017 with a registered office in London, had a director named Henry Maxwell residing in the UK capital.

 

In India, the company had two promoters, Naresh Gullia and Channi Singh. The company was “deliberately” dissolved in March 2019.

 

Mir and Choudhary then launched a real estate business and allegedly acquired land in Jammu using the funds generated from the fake crypto-currency trade, according to the ED.