Paytm clarified on Friday, January 24, that it had not received any fresh notice, communication, or query from the Enforcement Directorate (ED) after reports suggested that the leading fintech major was among companies facing a probe over ongoing cryptocurrency scams. Vijay Shekhar Sharma-led fintech dismissed the media reports as ‘factually incorrect and misleading’.”We confirm that we have not received any such new notice, communication, or query from the ED regarding the matter mentioned in the media articles,” Paytm said in a regulatory filing to the stock exchanges today, terming the information published in reports as “factually incorrect and misleading”.Also Read: Paytm share price cracks over 8% on report of ED investigation into an alleged crypto scam; fintech issues clarificationPaytm says not under ED lens over crypto scam Paytm dismissed the media reports, claiming the ED is investigating eight payment gateways, including Paytm, in connection with a scam involving 10 Chinese nationals, promoting investments in cryptocurrency mining.Drawing attention to its previous letter dated September 4, 2022, regarding the ED search operations involving certain merchants for whom it provided payment processing solutions, Paytm said that the current media reports pertained to similar old enquiries regarding third-party merchants.”We would like to clarify that these merchants are independent entities and are not part of our group. We confirm that we had fully cooperated with the authorities and had complied with all their directives,” Patym said in its BSE filing. Paytm further clarified that contrary to media reports, there has been no probe against the company or its subsidiaries, and the ED’s probe is against third-party merchants. “We urge investors and stakeholders not to rely on unverified media reports and assure you that should any material developments occur, we will promptly disclose the same under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,” Paytm added.Also Read: Paytm Q3 Results: Fintech giant’s net loss narrows to ₹208 crore, revenue drops 36% YoYPaytm. RazorPay under scanner for crypto scamEarlier today, the national daily Time of India reported that eight payment gateways, including Paytm, RazorPay, PayU, and Easebuzz, have been under the ED scanner in connection with ₹2,200 crore raised across 20 states and linked to 10 Chinese nationals in a cryptocurrency scam.According to the report, Chinese nationals were allegedly operating one of the biggest cryptocurrency scams from India through the HPZ Token app. The accused allegedly collected over ₹2,200 crore from various states in the country. The ‘proceeds of the crime’ were remitted out of the country, and a part of this amount was frozen in the payment gateways while being routed to beneficiaries. Also Read: Paytm’s UPI market share declines for fourth straight month to 8% in May over RBI crackdownThe amount stayed in the paym
‘No inquiry from ED’: Paytm refutes claims of being investigated in ₹2,200 crore cryptocurrency fraud.
