Economic Fraud
ED Targets Rs 500 Crore Crypto Scam: Razorpay, PayU, Easebuzz, Paytm Among 8 Payment Gateways Under Scrutiny
The Enforcement Directorate (ED) has frozen Rs 500 crore in virtual accounts linked to eight major payment gateways, including Razorpay, PayU, Easebuzz, and Paytm, in connection with the HPZ Token cryptocurrency scam. The scam, involving Chinese nationals, defrauded investors of over Rs 2,200 crore across 20 Indian states by luring them into investing in cryptocurrency mining through the HPZ Token app, promising high returns.
The ED acted swiftly to freeze the funds before they could be transferred to beneficiaries overseas. Reports suggest that when bulk payments were made, the amount remained with the gateways for a short period, during which the ED intervened.
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Razorpay has denied receiving any new communication from the ED, stating it remains compliant and committed to governance standards.
The HPZ Token scam was orchestrated by a group of 10 Chinese nationals who set up companies in multiple states, including Karnataka, Haryana, and Maharashtra. These companies used bank accounts in various locations, including 84 in Delhi, 37 in Karnataka, and 26 in Haryana, to facilitate the fraud.
The ED is now investigating the money trail and verifying whether the payment gateways generated Suspicious Transaction Reports (STR) to alert the RBI and Financial Intelligence Unit (FIU). The investigation stems from a case registered by the cybercrime police in Kohima, Nagaland. A PMLA court has declared Delhi resident Bhupesh Arora and his associates as fugitives for evading the agency despite non-bailable warrants. The probe continues as authorities trace the broader network and recover the proceeds of the scam.