PayU, Razorpay, Cashfree, Easebuzz under ED probe in cryptocurrency scam
24 Jan 2025, 04:17 PMThe scam reportedly amassed over Rs 2,200 crore from individuals across 20 states. The 'proceeds of the crime' were transferred out of the country.
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PayU, Razorpay, Easebuzz, Cashfree, Paytm and three other payment gateways have come under the Enforcement Directorate (ED) scanner.
This action is linked to a cryptocurrency scam involving 10 Chinese nationals operating the HPZ Token scheme, according to a Times of India report.
The scam reportedly amassed over Rs 2,200 crore from individuals across 20 states in the country. The 'proceeds of the crime' were transferred out of the country, but Rs 500 crore was frozen by the ED while in the custody of payment gateways during bulk transactions.
Out of the total amount frozen by the ED, the highest belonged to PayU at Rs 130 crore, followed by Easebuzz (Rs 33.4 crore), Razorpay (Rs 18 crore), Cashfree (Rs 10.6 crore) and Paytm (Rs 2.8 crore), as alleged proceeds of crime related to HPZ token scam, the report said.
The ED is currently probing the matter by tracking the flow of funds and checking whether payment gateways have created suspicious transaction reports (STR). The agency has also alerted the Reserve Bank of India (RBI) and the Financial Intelligence Unit (FIU).
The other payment gateways in connection to the case include WunderBaked, AgreePay and SpeedPay.
Responding to media reports, PayU spokesperson stated, "The investigations referenced in the recent media reports relate to events in 2022, for which we have fully cooperated with the Enforcement Directorate in the past. We were not approached by the media for any clarifications prior to the publication. There are factual inaccuracies in the reports concerning PayU, and we strongly refute any misrepresentations. At PayU, we remain committed to complying with all applicable laws and regulations and continue to uphold the highest standards of governance and transparency in all our operations."
The Chinese nationals gave people the option to invest in the mining of cryptocurrencies, including Bitcoins, via the HPZ token mobile app. There are more than 50 companies registered in Delhi with 84 bank accounts, 37 bank accounts and 26 companies in Karnataka, while 19 companies in Haryana and 11 in Uttar Pradesh.
The scamsters operated from Maharashtra, Gujarat, Andhra Pradesh, Telangana, Tamil Nadu, West Bengal and other states.
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