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Paytm dismissed media reports claiming it is under the Enforcement Directorate (ED) scanner for a cryptocurrency scam. The reports involve allegations that eight payment gateways, including Paytm, RazorPay, PayU, and Easebuzz, are being investigated for facilitating a ₹2,200 crore scam linked to 10 Chinese nationals across 20 states. Paytm clarified that the merchants in question are independent entities and not part of its group. The company emphasized its cooperation with authorities and compliance with all directives.
Paytm Denies Allegations in ED Crypto Scam Probe
Paytm has strongly refuted media reports claiming its involvement in an Enforcement Directorate (ED) investigation related to a cryptocurrency scam. The company clarified that it is not under the ED’s scanner and addressed concerns regarding its association with third-party merchants involved in the case.
Background of the Allegations
A report from the Times of India suggested that eight payment gateways, including Paytm, RazorPay, PayU, and Easebuzz, are being investigated by the ED in connection with a ₹2,200 crore cryptocurrency scam. The scam reportedly spanned 20 states and was linked to 10 Chinese nationals who promoted investments in cryptocurrency mining.
Paytm’s Response
Drawing attention to its previous communication dated September 4, 2022, Paytm stated:
- The merchants in question are independent entities and are not part of Paytm’s group.
- Paytm has fully cooperated with authorities during past investigations.
- The recent media reports pertain to old inquiries involving third-party merchants for whom Paytm provided payment processing solutions.
In its BSE filing, Paytm reiterated its commitment to regulatory compliance and full cooperation with investigative authorities.
RazorPay and Other Payment Gateways Under Scrutiny
Alongside Paytm, other prominent payment gateways such as RazorPay, PayU, and Easebuzz have also been implicated in the allegations. The ED’s probe is centered around the misuse of these platforms by third-party merchants to facilitate illicit cryptocurrency transactions.
The ₹2,200 Crore Crypto Scam
The alleged scam involves raising funds worth ₹2,200 crore across multiple states. Linked to 10 Chinese nationals, the scheme reportedly promoted investments in fraudulent cryptocurrency mining operations. The ED is investigating the role of payment gateways in enabling these transactions.
Implications for the Payments Industry
This investigation underscores the importance of due diligence and robust monitoring mechanisms for payment gateways. While the merchants involved may act independently, platforms like Paytm and RazorPay are likely to face increased scrutiny from regulatory bodies.
Conclusion
Paytm has categorically denied its involvement in the alleged cryptocurrency scam and assured full compliance with regulatory directives. As the investigation unfolds, the focus remains on identifying the perpetrators and preventing similar incidents in the future.
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