Leh: On Friday, the Enforcement Directorate (ED) of the Srinagar zone conducted its first operation in the Leh-Ladakh region as part of an investigation into a widespread cryptocurrency fraud case that has resulted in losses exceeding ₹7 crore for investors.
According to officials, the regional office of the ED launched a search operation at six locations, including Leh in Ladakh, Jammu in Jammu and Kashmir, and Sonipat in Haryana. The case involves AR Mir and his associates, accused of defrauding 2,508 investors of over ₹7.34 crore under the guise of a fake cryptocurrency venture called “Emollient Coin Limited.”
The raid, conducted under the provisions of the Prevention of Money Laundering Act (PMLA), targeted six premises associated with the fake cryptocurrency business run by AR Mir and his associates in Leh, Jammu, and Sonipat.
An official statement revealed that thousands of investors had invested in the cryptocurrency named “Emollient Coin.” However, they neither received any returns nor the cryptocurrency itself, resulting in multiple FIRs being filed in the Leh region and numerous complaints registered in Jammu and Kashmir.
SSP Leh Shruti Arora stated that the ED's search operation was based on a complaint by the Additional District Magistrate of Leh, which named AR Mir and Ajay Kumar Chaudhary as the accused. An investigation conducted by a panel formed by the District Magistrate found that AR Mir and his agents were operating a fake cryptocurrency business from an office in Anjuman Moin-ul Complex in Leh. Following the investigation, the panel shut down the office.
Officials reported that investors were promised lucrative returns but received neither the promised returns nor their invested amount back. The investigation revealed that the collected amount was laundered by the promoters of the business and used for acquiring land properties in Jammu.
The elaborate scheme involved enticing individuals to purchase the fake cryptocurrency, Emollient Coin, through cash, bank transfer, or Bitcoin exchange via a mobile app. The scam promised investors returns of up to 40 percent after a lock-in period of 10 months.
Additionally, investors were encouraged to recruit others, earning commissions of up to 7 percent for direct referrals. This multi-level marketing structure offered commissions of 3 percent at the second level and up to 1 percent at the tenth level, creating a complex and fraudulent financial web.
The investigation uncovered that 2,508 investors had invested a total of ₹7,34,36,267 in the scheme, making it one of the most significant financial scams in the recent history of the region. The historic operation by the ED in Leh-Ladakh marks a crucial step towards cracking down on financial crimes and protecting investors from fraudulent schemes.
