Emollient Coin Scam in India: Secrets of Financial Operation

Emollient Coin Scam in India: Operation Details

The Indian Directorate of Enforcement conducted an operation against the founders of the cryptocurrency Emollient Coin, which turned out to be a fraudulent scheme promising investors lucrative returns.

Investors’ Losses and False Profit Promises

Local media reports indicate that up to 2,508 investors in India collectively lost 7,343,6267 INR (approximately 890,000 USD), trusting the promises associated with the cryptocurrency. Emollient Coin Limited, a company operating on the borderline of legality, pledged returns of up to 40% of the investment. In exchange for locking funds for 10 months, investors were also given the opportunity to participate in a two-tier referral scheme promising commissions of up to 7% for each new individual brought into the project.

Referral Schemes and Harmful Practices

Referral schemes of this kind are common in scams related to multi-level marketing. They involve continuous recruitment of new members, persuading them to invest in projects’ promises that often turn out to be non-existent.

Operation Conducted Through a Mobile Application

The Emollient Coin fraud operation was carried out through a mobile application, making it easier to collect funds from investors through bank transfers, cryptocurrency exchanges, and even cash transactions.

Fraudulent Location and Activities

Emollient Coin Limited, with a local office, misled investors by suggesting that its headquarters were in London. Additionally, false information was provided about the project leader, using the name and surname Henry Maxwell.

Law Enforcement Response and Legal Consequences

After receiving numerous complaints in 2020, the Indian law enforcement agency initiated a search operation in the Leh Additional Magistrate District. The accused, including A R Mir, Ajay Kumar Choudhary, and two other promoters, are now facing charges of defrauding multiple individuals.

India has long been grappling with cryptocurrency-related scams, posing an increasing challenge to law enforcement agencies and financial regulators in the country.

Cryptocurrency Market Situation in India

The Indian Financial Intelligence Unit expressed concerns about the potential misuse of cryptocurrency exchanges in money laundering activities. Cryptocurrency service providers in the country are required to register with FIU-India and comply with anti-money laundering legislation.

Intensified Actions Against Financial Frauds

June marks a period of intensified actions against financial frauds in India. The police in Hyderabad launched an investigation into the Max Crypto Trading Ponzi fraud, resulting in a loss of at least 200,000 USD for at least 50 investors.

Similarly, in the same month, the Indian law enforcement agency seized 3.83 million dollars in cash and other assets related to the Highrich Online group, suspected of operating based on a similar fraudulent scheme.

A month earlier, the agency dismantled the “E-nugget” scam, which defrauded victims of over 10 million dollars, posing as a gaming platform.