Paytm Shares price Plunged 9% as ED Crypto Scam Probe Sends Shockwaves!
Paytm Shares prices plunged: Shares of the fintech major One97 Communications, the parent company of the popular payments platform Paytm, experienced a significant drop of up to 9% on Friday, reaching a low of Rs 773.90. This decline came after reports surfaced indicating that Paytm is one of the eight payment gateways currently under investigation by the Enforcement Directorate (ED) in connection with a cryptocurrency scam.
In addition to Paytm, the ED is also looking into Razorpay, PayU, Easebuzz, and several other payment gateways. According to The Times of India, the ED has frozen around Rs 500 crore in the virtual accounts of these companies over the past two years. This action is related to a case involving 10 Chinese nationals who allegedly orchestrated one of the largest cryptocurrency scams, known as HPZ Token, from India.
The accused individuals are said to have amassed over Rs 2,200 crore from investors in 20 different states. They then reportedly transferred the illicit funds out of India, with a portion of the money being frozen in the payment gateways before reaching the intended recipients.
During the process of making bulk payments, the funds were held by the payment gateways for a day or two, resulting in the Enforcement Directorate freezing approximately Rs 500 crore, as stated in the report.
Out of the total amount of Rs 497 crore frozen in the virtual accounts of payment gateways, PayU had the largest share, with Rs 130 crore linked to the alleged proceeds of crime from the HPZ Token scam. This was followed by Rs 33.4 crore with Easebuzz, Rs 18 crore with Razorpay, Rs 10.6 crore with CashFree, and Rs 2.8 crore with Paytm.
The individuals involved in the scam established companies in at least 20 states across India, enticing investors with the opportunity to invest in cryptocurrency mining, specifically Bitcoin, through the mobile app HPZ Token.
According to reports from Times of India, more than 50 companies were registered in Delhi with 84 bank accounts, 26 firms in Karnataka with 37 bank accounts, 19 in Haryana, and 11 in Uttar Pradesh. Additionally, companies were registered in Maharashtra, Gujarat, Andhra Pradesh, Telangana, Tamil Nadu, and West Bengal.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.