
Shares of One 97 Communications Ltd, the parent company of Paytm, fell 6.73% to ₹791.95 on Friday, January 24, 2025, following media reports suggesting that the Enforcement Directorate (ED) is investigating eight payment gateways, including Paytm, in connection with a cryptocurrency scam. The ED probe, as reported, centers around ₹500 crore allegedly frozen in virtual accounts linked to Chinese nationals involved in the HPZ Token scam.
Key Highlights:
- ED Probe: Payment gateways such as Paytm, Razorpay, and PayU are under scrutiny for allegedly freezing ₹500 crore in proceeds of the scam.
- Scam Details: The scam reportedly involved collecting over ₹2,200 crore across 20 Indian states, with funds remitted abroad.
- Paytm’s Role: Paytm allegedly froze ₹2.8 crore, a relatively small share compared to other gateways.
- Stock Impact: The investigation and media reports weighed heavily on investor sentiment, causing Paytm’s stock to drop significantly from its previous close of ₹849.10.
Paytm’s Clarification:
In response, Paytm issued a statement denying the allegations and labeling the media reports as “factually incorrect and misleading.” The company emphasized the following points:
- No New ED Communication: Paytm clarified it has not received any new notice or query from the ED related to the alleged crypto scam.
- Prior Investigation (2022): The company referenced an earlier ED investigation in September 2022 involving independent third-party merchants using its payment gateway services, not directly implicating Paytm or its subsidiaries.
- Cooperation with Authorities: Paytm reiterated its full cooperation during past investigations and assured stakeholders of its compliance with all regulatory norms.
- No Direct Probe: Paytm highlighted that the ongoing investigation pertains to third-party merchants and not the company itself.
Assurance to Stakeholders:
Paytm assured investors and stakeholders that it remains committed to transparency and high governance standards. The company urged stakeholders not to rely on unverified reports and reaffirmed its commitment to disclosing material developments in line with SEBI regulations.