What Actions Did the ED Take in the Rs 2.34 Crore Cryptocurrency Scam?
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Synopsis
The Enforcement Directorate has taken serious actions against a fraudulent cryptocurrency scheme, attaching assets worth Rs 2.34 crore. This development raises questions about investor protection and the extent of such scams in India. What’s the full story behind the notorious ‘Emollient Coin’?
Key Takeaways
- ED has attached Rs 2.34 crore in fraudulent assets linked to the Emollient Coin scheme.
- Naresh Gulia is the alleged mastermind behind the operation.
- The scam involved promises of doubling investments
- Investigations are ongoing, with further actions expected from the ED.
- Awareness of cryptocurrency scams is crucial for investors.
Srinagar, May 28 (NationPress) The Enforcement Directorate (ED) Srinagar announced on Wednesday that it has provisionally attached two bank accounts along with immovable assets valued at Rs 2.34 crore in connection with a fraudulent cryptocurrency scheme.
According to a press release from the ED, the agency has attached deposits in two bank accounts and properties located in the Ghati River Valley, Dehradun, amounting to Rs 2.34 crore linked to the fraudulent cryptocurrency scheme named “Emollient Coin”, operated by the company M/S The Emollient Coin Limited, based in the UK.
The ED revealed that the company was represented in India by Naresh Gulia, who acted as the promoter both domestically and internationally. The investigation was initiated following an FIR filed by Ladakh Police at the Leh police station under Section 420 of the IPC, 1860, against Attiul Rehman Mir (a Leh resident) and Ajay Kumar (also known as Ajay Kumar Choudhary, a resident of Jammu) regarding the illegal cryptocurrency scheme.
Investigations by the ED disclosed that Naresh Gulia was the principal architect behind the operation, which involved the sale of the fake cryptocurrency “Emollient Coins” and a multi-level marketing model.
Gulia also created and managed a deceptive mobile application, “Emollient Coin”, for this fraudulent operation, which he controlled.
However, the company was intentionally struck off and dissolved on March 5, 2019. The scheme was promoted by Gulia in collusion with Ajay Kumar Choudhary and Attiul Rehman Mir with promises to double investors’ funds within ten months.
The value of the fraudulent coin was intentionally manipulated by Gulia before the lock-in period ended, and the mobile application abruptly ceased functioning in October-November 2019.
Consequently, Gulia, along with Mir and Choudhary, deceived numerous unsuspecting individuals, resulting in significant financial losses.
The ED stated that Gulia possesses proceeds of crime totaling Rs 6.05 crore, comprising Rs 2.05 crore from Choudhary and Rs 4 crore from Mir, all obtained through defrauding innocent investors in Leh and Jammu.
Previously, the ED had confiscated Rs 91 lakh from Gulia's residence and provisionally attached eleven properties linked to Gulia, Choudhary, and Mir located in Jammu, New Delhi, and Sonipat (Haryana), totaling Rs 3.66 crore. Thus, the overall attachment in this case has now reached Rs 6 crore, in addition to the seizure of Rs 91 lakh.
Further investigations into the case are ongoing.
Point of View
It is crucial to approach cases like the fraudulent cryptocurrency scheme with a lens of accountability and transparency. The actions taken by the Enforcement Directorate underscore the necessity for stringent regulatory measures to protect investors from such scams, ensuring that justice prevails for those affected.
NationPress
08/06/2025
Frequently Asked Questions
What is the Emollient Coin scam?
The Emollient Coin scam involved a fraudulent cryptocurrency scheme promising investors substantial returns, but ultimately leading to financial losses for many.
Who is Naresh Gulia?
Naresh Gulia is identified as the mastermind behind the Emollient Coin scam, acting as the promoter of the fraudulent scheme in India.
What actions has the ED taken?
The Enforcement Directorate has provisionally attached bank accounts and properties worth Rs 2.34 crore linked to the scam and is conducting ongoing investigations.
How much money was involved in this scam?
The total amount of proceeds of crime linked to the scam is estimated to be around Rs 6.05 crore.
What is the current status of the investigation?
The ED is continuing its investigation into the Emollient Coin scheme, seeking to uncover further details and bring those responsible to justice.
