- Fake crypto business office at Anjuman Moin-Ul Complex in Leh sealed
- Raids in J&K, Haryana also; 2508 investors duped of Rs 7,34,36,267
Yash Khajuria
Leh, Aug 02: The Enforcement Directorate (ED) of the Srinagar zone on Friday conducted its first-ever search operation in the Leh-Ladakh region, as part of an extensive probe into a cryptocurrency fraud case that has left investors with losses exceeding Rs 7 crore.
As per officials, the ED’s zonal office initiated searches at six locations, including Leh town in Ladakh, Jammu in Jammu and Kashmir, and Sonipat in Haryana. The case involves AR Mir and associates, accused of duping 2,508 investors by collecting over Rs 7.34 crore under the guise of a fake cryptocurrency venture named ‘Emollient Coin Limited.’
The raid, conducted under the provisions of the Prevention of Money Laundering Act (PMLA), targeted six premises in Leh, Jammu, and Sonipat, connected to the fake cryptocurrency business run by AR Mir and his associates.
An official statement detailed that thousands of investors had invested their money in a cryptocurrency named ‘Emollient Coin.’ However, they did not receive any returns or the currency itself, prompting multiple FIRs to be filed in the Leh region and numerous complaints lodged in Jammu and Kashmir.
SSP Leh Shruti Arora (IPS) informed that the search operation by the ED was based on a complaint from Additional District Magistrate, Leh, naming AR Mir and Ajay Kumar Choudhary as the accused. A probe conducted by a panel formed by the District Magistrate revealed that AR Mir and his agents were running the fake cryptocurrency business from an office at the Anjuman Moin-Ul complex in Leh. Following the probe, the panel shut down the office.
Authorities disclosed that investors were promised lucrative returns but received neither returns nor the invested funds back. The investigation revealed that the collected funds were laundered by the business promoters and used to acquire land assets in Jammu.
In an elaborate scheme, individuals were enticed into buying the fake cryptocurrency, Emollient Coin, through cash, bank transfers, or Bitcoin exchanges via a mobile app. The scam promised investors returns of up to 40% after a 10-month lock-in period. Additionally, investors were incentivized to recruit others, earning commissions of up to 7% for direct referrals. This multi-level marketing structure offered further commissions of 3% at the second level and 1% for subsequent levels up to the tenth, creating a complex and deceptive financial web.
A total of 2,508 people invested Rs 7,34,36,267 in the in-vestment plan offered by Mir and the company (Emollient) floated by him that was incorporated in September 2017 and had its registered office in London. A man, Henry Maxwell, living in the UK capital, was its director.
The company had two promoters in India – Naresh Gullia and Channi Singh. The company was “deliberately” dissolved in March 2019, and Mir along with Choudhary launched a real estate business and acquired lands in Jammu from the funds generated by the fake cryptocurrency trade, according to the ED.
