ED Cracks Down on $890K Emoillent Crypto Scam in India

India’s Enforcement Directorate (ED) has initiated a search operation against the founders of Emoillent Coin, a fraudulent cryptocurrency that lured investors with promises of substantial returns. Local media reports indicate that 2,508 investors in India lost a combined total of ₹73,436,267 (approximately $890,000) in their quest to capitalize on the cryptocurrency boom.

The dubious coin, marketed as “Emollient Coin Limited,” attracted users by offering up to 40% returns for locking their investments over ten months. Additionally, a multi-level referral scheme promised up to 7% commissions for recruiting new investors, a common tactic in pyramid schemes.

Such referral schemes typically involve continuous recruitment under the guise of investing in a promising, yet non-existent project. Once a significant number of participants are onboard, the scammers vanish with the funds. Emoillent Coin’s perpetrators operated via a mobile application, soliciting funds through bank transfers, cryptocurrency exchanges, and direct cash payments. They capitalized on Bitcoin’s popularity to persuade users into investing.

Emollient Coin Limited, which maintained a local office but falsely claimed a London base, was led by Henry Maxwell. Active from 2017 to 2019, the scam ended with the deliberate dissolution of the fraudulent company, leaving investors with substantial losses. The ED alleges the scammers used the stolen funds to acquire land assets.

Prompted by multiple complaints filed in 2020 with the Additional District Magistrate in Leh, a northern Indian town where the scam was centered, the ED launched a search operation. The accused — A R Mir, Ajay Kumar Choudhary, and two other promoters — face charges of defrauding numerous individuals. Under the Prevention of Money Laundering Act (PMLA), the ED has seized offices and assets linked to the scheme.

Indians Plagued by Crypto Scams

India has seen a surge in crypto-related scams over recent years. In late June, law enforcement in Hyderabad began investigating the Max crypto trading Ponzi, which defrauded at least 50 investors out of $200,000. During the same month, the ED froze $3.83 million in cash and assets related to the Highrich online group, suspected of a similar crypto investment scam. In May, the agency cracked down on the “E-nugget” scam, which swindled over $10 million from victims under the guise of a gaming platform.

India’s Financial Intelligence Unit has expressed concerns about the potential misuse of cryptocurrency exchanges for money laundering. Crypto-based service providers in India must register with FIU-India and comply with the PMLA Act.

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