Overview of the Emoillent Coin Scam
The founders of Emoillent Coin who were the mastermind of the fraud have come under the radar of India’s Enforcement Directorate (ED) after the latter initiated a search operation. Based on the reports from various news sources, a total of 2,508 investors in India lost the minimum amount of 73,436,267 Indian Rupees (just short of $890,000) for the attestation of currency of that fact. It was the time when the promise of making a big return in a cryptocurrency lottery had people being so optimistic about that promise, they signed up, and now they are crying because of their loss.
How the Scam Operated
Promises of High Returns
The fraudsters behind the coin cooked up a lie that there was another company in the form of “Emollient Coin Limited” which was the name under which they launched their major cryptocurrency along with the bribe of the return of 40% for every 10 months of them not using their money at the cost of a locked time period. The coin also had a referral reward program that promised users up to 7% if they brought in a friend who used the program. Of the graduated freshman students in a certain institution, only 70 have been selected to follow the new program.
Referral Scheme
Multilevel marketing consists of fake programs, and this kind of version is not a rare case. Then comes the personal risk of losing the money they have invested in the project which, in fact, does not exist at all. After a few victims have shaken the dust off their hands by coming across those criminals, they leave the poor guys waiting for what to do the next day.
Methods of Operation
The individuals behind Emollient Coin provided the customers with a mobile application. Sanctions could be obtained via the transfers, the money was moved to the cryptocurrency exchanges, and or physical cash payments were also sent. There are also rigged exchange rates and the theft of fund arguments. It was announced through newsletters that people can start sending in investments for the firm that was supposed to own cryptocurrencies.
False Claims and Disappearance
The money was handled dishonestly led by Henry Maxwell who pretended to be the CEO and Managing Director of Emollient Coin Limited although he claimed that the office was actually in London. The culprit, in this case, removed the extra amount of money that was on the side and dissolved the dummy company which is why the users ended up being as the company had vanished. In a December note, the enforcement directorate emphasized that the money from selling the land was the result of the fraudsters swindling the public”.
Law Enforcement Response
Back on the laying of multiple grievances in 2020 with the Additional District Magistrate in Leh which is a northern Indian town where the swindling has its roots, Indian forces started a search operation. Those accused are A R Mir, Ajay Kumarchoudhary, and individuals along with two other promoters who are accused of swindling a lot of people. Based on the Prevention of Money Laundering Act, the ED has impounded the offices and resources linked to the program.
Crypto Scams in India
Rising Incidents
Crypto scams have occurred in India in the last few years. By the end of June, the police in Hyderabad began an inquiry into the Max crypto trading Ponzi that cheated at least 50 investors of $200,000.
Other Notable Cases
At the same time the ED froze the $3.83 million in cash as well as other assets related to the Highrich online group, who were suspected of running a similar project in the name of crypto investments. The month before, the agency took a step against the “E-nugget” fraud, which collected over $10 million by cheating the victims making out the process as a gaming platform.
Regulatory Concerns
India’s Financial Intelligence Unit has informed the international community that they suspect crypto exchanges might be used for money laundering. Indian crypto sector supports exchanges that use customer’s real identities only while dealing in cryptocurrency. They also require to be (PMLA) Prevention of Money Laundering Act compliant.
Facing growing abuse of cryptocurrency including the increasing chain of virtual currency scams, in India, the Enforcement Directorate has set the pace for the establishment of necessary regulations and practices which will ensure safety to all investors from the deceptive practices.
