Paytm, Razorpay, six other payment gateways in ED crosshairs for crypto scam: Report

24 January 2025

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The Enforcement Directorate (ED) has launched an investigation into 9 payment gateways, together with Razorpay, PayU, and Paytm, freezing Rs 500 crore of their digital accounts, The Occasions of India reported. This probe is linked to a cryptocurrency rip-off, HPZ Token, allegedly operated by 10 Chinese language nationals from India.

The accused have allegedly scammed clients out of Rs 2,200 crore throughout 20 states in India, and transferred the proceeds out of India. Part of this was frozen with the cost gateways. Individuals got the choice to spend money on cryptocurrencies, together with Bitcoin by the cellular app HPZ Token.

The federal government company is checking if the cost gateways flagged the suspicious transactions, and alerted the central financial institution and the Monetary Intelligence Unit (FIU).

As per the report, PayU had the best portion of Rs 500 crore, at Rs 130 crore, adopted by Easebuzz with Rs 33.4 crore, Razorpay with Rs 18 crore and Rs 2.8 crore with Paytm.

Shares of One97 Communications, which operates the funds platform Paytm, fell by up to 9% to a day’s low of Rs 773.90 on Friday after the report emerged.