Paytm, Razorpay Under ED Investigation for Crypto Scam? Report Highlights ₹2,200 Crore Raised in 2 Years by 10 Chinese Nationals

Eight payment gateways, including Paytm, Razorpay, PayU, and Easebuzz, are under scrutiny by the Enforcement Directorate (ED) in connection with a ₹2,200 crore cryptocurrency scam spread across 20 states and linked to 10 Chinese nationals, according to a report.

Alleged Scam and Modus Operandi

The accused allegedly ran one of India’s largest cryptocurrency scams, HPZ Token, The Times of India reported. Over ₹2,200 crore was collected from investors across the country under the pretext of cryptocurrency mining, including Bitcoin, via the HPZ token mobile app.

The illicit funds were reportedly transferred out of the country, with some amounts temporarily parked in payment gateways before being disbursed in bulk payments. The ED intervened during this process and froze ₹500 crore of the scam-related proceeds.

Breakdown of Frozen Funds

Among the total amount frozen by the ED:

•PayU: ₹130 crore

•Easebuzz: ₹33.4 crore

•Razorpay: ₹18 crore

•Cashfree: ₹10.6 crore

•Paytm: ₹2.8 crore

Other payment gateways linked to the case include WunderBaked, AgreePay, and SpeedPay.

Ongoing Investigation & Regulatory Alerts

The ED is currently tracking the flow of funds and verifying whether payment gateways submitted Suspicious Transaction Reports (STRs) as required by law. The Reserve Bank of India (RBI) and Financial Intelligence Unit (FIU) have been alerted, as financial institutions are mandated to report STRs, which are then forwarded for enforcement action.

Denials & Company Responses

Several payment gateways have denied the allegations, stating that the reports are factually incorrect and misleading:

•Paytm clarified that it had not received any notice or communication from the ED regarding this matter and termed the media reports as inaccurate.

•PayU stated that the investigations referenced in media reports pertain to events from 2022, and the company has fully cooperated with the ED in the past.

•Razorpay dismissed the reports as inaccurate and misleading, emphasizing that it had received no new notices or inquiries from the ED.

Each company reiterated its commitment to regulatory compliance, governance, and transparency.