The Enforcement Directorate (ED) in India is investigating major payment gateways like Paytm and RazorPay over their alleged involvement in the HPZ Token cryptocurrency scam.
Details of the HPZ Token Cryptocurrency Scam
The HPZ Token scam extended across 20 Indian states and became one of the largest cryptocurrency frauds. Through the HPZ Token application, the accused party gained significant funds by convincing victims to participate in cryptocurrency mining operations.
Role of Payment Gateways in the Scheme
Funds from the scheme were transferred outside India, leading to ED freezing these funds in payment gateway accounts. PayU froze $1.51 million, Easebuzz held $387,000, and Razorpay possessed $208,000. Transactions involved platforms such as Paytm and Cashfree.
ED's Investigation and Progress
The ED investigates whether payment gateways could identify suspicious transactions. Notifications were sent to the Reserve Bank of India and the Financial Intelligence Unit for further action. Over 50 businesses operating from Delhi and Karnataka were involved in the scam.
This investigation serves as a reminder of the risks associated with crypto investments in India. Authorities remain vigilant to prevent such frauds in the future.
