SRINAGAR: The Enforcement Directorate (ED) today conducted coordinated searches at various sites in the Union Territories of Jammu and Kashmir and Ladakh and Haryana as part of its money laundering investigation tied to a cryptocurrency scam in which investors lost over Rs 7 crore worth of funds.
The ED agents under the direction of Joint Director Jammu and Kashmir Navneet Aggarwal executed searches at six locations in Leh (Ladakh), two in Jammu, and one in Haryana related to the case against AR Mir and associates.
In Jammu, the ED searched the residences of Ajay Kumar Choudhary at Miran Sahib and Channi Singh at Talab Tillo Camp, while in Leh, the agency searched the premises of AR Mir at Choglamsar. Documents and electronic devices relevant to the fraud were seized by the ED agents during the searches.
According to officials, it is claimed that 2,508 investors invested over Rs 7.34 crore in a fraudulent cryptocurrency scheme named “Emollient Coin Limited.” They did not receive any returns or currency back, and these funds were laundered by the scheme’s promoters to purchase real estate in Jammu.
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The money laundering case arises from a March 2020 FIR filed in Leh and other complaints in the Union Territory (UT) of Jammu and Kashmir (J-K) against AR Mir and Ajay Kumar Choudhary.
Police in Leh stated in their FIR that an investigation was conducted by a committee established by the local District Magistrate against Mir and his agents, who were running the fraudulent cryptocurrency business (Emollient Coin Limited) from an office at the Anjuman Moin-Ul-complex, opposite SNM Hospital, in Leh.
The committee sealed this office during the inquiry on charges of “defrauding numerous innocent individuals by promising to double their investment,” according to the FIR.
The accused persuaded residents of the UT of Ladakh and other areas to purchase “Emollient Coin” using cash or transferring money into bank accounts, according to Enforcement Directorate (ED) officials. Investors were also deceived with promises of “Bitcoins” and returns of upto 40 percent with a lock-in period of 10 months, the investigation agency stated.
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Investors were given a commission of up to seven percent of the investment made by others they referred, forming a multi-level marketing structure, the ED discovered.
A total of 2,508 people invested Rs 7,34,36,267 in the investment plan offered by Mir and the company (Emollient) established by him, which was incorporated in September 2017 and had its registered office in London. A man named Henry Maxwell, residing in the UK capital, was its director.
The company had two promoters in India — Naresh Gullia and Channi Singh. The company was “intentionally” dissolved in March 2019, and Mir along with Choudhary started a real estate business and acquired properties in Jammu using the funds generated by the fraudulent cryptocurrency scheme, according to the ED.