The Indian Enforcement Directorate has exposed a cryptocurrency scam involving Emollient Coin Limited, defrauding users of $890,000 through false investment schemes and multi-level marketing tactics.
Points
- Emollient Coin scam promised high returns and used a multi-level referral scheme.
- The scam involved false claims and fraudulent activities, resulting in significant financial losses.
- Indian authorities have seized assets and launched investigations into the perpetrators.
- Multiple crypto scams have been reported in India, highlighting regulatory challenges.
Scam Details and Modus Operandi
Emollient Coin Limited, a fraudulent cryptocurrency scheme, promised investors up to 40% returns in exchange for locking their investments for ten months. The scheme also promoted a multi-level referral program, offering commissions for bringing in new users. Such referral schemes are common in multi-level marketing scams, relying on continuous recruitment to sustain the illusion of profitability.
The scam operated through a mobile application, soliciting funds via bank transfers, cryptocurrency exchanges, and direct cash payments. To lure victims, the perpetrators leveraged the popularity of Bitcoin, making false claims about the investment’s legitimacy and potential returns.
Investigation and Legal Actions
The Indian Enforcement Directorate launched an investigation following multiple complaints filed with the Additional District Magistrate in Leh, where the scam was based. The accused, including A R Mir, Ajay Kumar Choudhary, and two other promoters, are facing charges of defrauding numerous individuals. Under the Prevention of Money Laundering Act, the ED has seized the offices and assets linked to the scheme.
Broader Context of Crypto Scams in India
India has witnessed several crypto-related scams in recent years, highlighting the need for stricter regulatory oversight. In late June, law enforcement in Hyderabad investigated the Max crypto trading Ponzi scheme, which defrauded at least 50 investors out of $200,000. Similarly, the ED froze $3.83 million in assets related to the Highrich online group and cracked down on the E-nugget scam, which amassed over $10 million by masquerading as a gaming platform.
Conclusion
The Emollient Coin scam underscores the persistent challenges of regulating the cryptocurrency market in India. As authorities continue to crack down on fraudulent schemes, investors are urged to conduct thorough research and exercise caution before participating in any cryptocurrency investments.
解説
- Multi-Level Marketing （MLM）: A strategy where salespersons earn income from direct sales and recruiting new salespersons, often criticized for resembling pyramid schemes.
- Ponzi Scheme: A fraudulent investment operation that pays returns to earlier investors using the capital of newer investors rather than profit earned.
- Prevention of Money Laundering Act: An Indian law aimed at preventing
money laundering and related activities, empowering authorities to seize and investigate assets involved in such activities.
Understanding these terms and the regulatory context can help investors navigate the cryptocurrency landscape more safely and avoid falling victim to fraudulent schemes.