Digital payments giant Paytm has denied receiving any new notices or queries from the Enforcement Directorate (ED) concerning recent media reports alleging its involvement in a cryptocurrency scam.
In an official statement, Paytm clarified that the information circulated by media outlets on January 24, 2025, was “factually incorrect and misleading.” The company emphasised that it had not been approached by the media for verification prior to the publication of these reports.
Referring to a previous letter dated September 4, 2022, Paytm reiterated that the ED’s probe involved certain third-party merchants for whom the company provided payment processing solutions. Paytm stated that these merchants operate independently and are not part of its corporate structure. The company affirmed its full cooperation with authorities in the past and compliance with all directives.
Paytm Assures Investors Amid Stock Price Drop
Despite Paytm’s denial, its share price took a significant hit on Friday, plunging over 9 per cent following reports of the alleged ED investigation into its operations linked to the HPZ Token cryptocurrency scam. The company’s stock fell by as much as 8.84 per cent, reaching a low of Rs 773.90 on the Bombay Stock Exchange (BSE).
Paytm urged its investors and stakeholders to avoid relying on unverified media reports and assured them that any material developments would be disclosed in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The Cryptocurrency Scam
According to reports, the ED has frozen approximately Rs 500 crore in virtual accounts linked to eight payment gateways, including Razorpay, PayU, Easebuzz, and Paytm. The scam, allegedly orchestrated by ten Chinese nationals, reportedly collected over Rs 2,200 crore from investors across 20 states through the HPZ Token mobile app.
The fraudulent operation involved enticing individuals to invest in cryptocurrency mining ventures, including Bitcoin. The perpetrators established a network of shell companies across multiple states and used over 200 bank accounts to launder funds. Some notable figures from the scam include:
- Delhi: Over 50 companies with 84 bank accounts.
- Karnataka: 26 companies with 37 bank accounts.
- Other States: Uttar Pradesh, Maharashtra, Gujarat, Tamil Nadu, and West Bengal.
Funds Frozen by ED
The ED’s crackdown resulted in the freezing of funds across various payment platforms as follows:
- PayU: Rs 130 crore
- Easebuzz: Rs 33.4 crore
- Razorpay: Rs 18 crore
- CashFree: Rs 10.6 crore
- Paytm: Rs 2.8 crore
Other platforms such as WunderBaked,
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