Indian fintech firm gateway PTM has clarified the claims about India’s ED investigating payment merchants regarding an alleged crypto scam.
The firm has refuted the claims saying that ED’s past investigation pertained only to third-party merchants which are independent entities.
The clarification comes as a response to previous reports that stated that the Enforcement Directorate (ED) of India was looking into eight payment gateways in connection with a purported cryptocurrency scam.
Paytm’s Responds Says No New Notice Received
In a response to UnoCrypto’s previous report, the fintech firm said, “We would like to confirm that there is no new ED search or probe on Paytm. We have not received any new notice, communication, or query from the authorities regarding the matter as mentioned.”
They add, “The ED’s past investigation pertained only to third-party merchants, and we have always fully cooperated and complied with all directives. We kindly request you to update the article accordingly.”
ED Probe in Crypto Scam: What Had Happened?
According to previous media sources, the accused in the case were running a countrywide operation that included companies established in at least 20 states and allowed investors to mine cryptocurrencies, including Bitcoin, through the HPZ Token smartphone app.
Over the course of the last two years, the regulator has decided to freeze almost Rs 500 crore ($57.9 million) in virtual accounts related to ten Chinese people running one of the biggest cryptocurrency scams, HPZ Token, from India.
Over Rs 2,200 crore was allegedly collected by the accused from people in 20 states in “proceeds of crime,” some of which were blocked by payment gateways before being sent to the recipients.
The ED has frozen nearly Rs 500 crore during the day or two that the funds were with the gateways while making bulk payments.
India Takes Strict Measures Against Crypto Scams
The Indian ED has been keeping a careful eye on the cryptocurrency market in an attempt to curb illegal activity there. The move comes amid a global rise in illicit crypto activities.
The financial markets are seriously threatened by cryptocurrency-related frauds and scams, which have increased globally in comparison to prior years.
Just previously, more than Rs 106 crore ($12 million) in assets were recently seized by the Enforcement Directorate as part of an investigation against Chinese nationals involved in a cryptocurrency scam in the Indian state of Nagaland.
So far in this probe, about Rs 603 crore ($71.4 million) has been collected. Not only did the defendants, many of them were Indian nationals, play games and place bets online, but they also looked for investments using the “HPZ Token.”