Overview: A probe into the $25.5 million crypto scam by the Indian Enforcement Directorate puts big payment players like Paytm, RazorPay, and PayU in the limelight. The investigation, having frozen upwards of more than $5.81M thus far, has reportedly exposed large loopholes in how suspicious transactions were treated.
The HPZ Token scam has India’s financial regulators on red alert. This crypto mining scheme duped people in 20 states, raking in millions before transferring the loot overseas. Now, the ED is investigating eight payment gateways, including big names like Paytm, RazorPay, and PayU, for their part in processing such fraudulent transactions.
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The crackdown unveiled frozen funds across the platforms: PayU leads the chart at $1.51M, Easebuzz follows with $387K, and RazorPay stands at $208K. The reports quote these companies to have helped in facilitating the bulk transactions without flagging suspicion. The ED is grilling the companies as to whether or not they filed the Suspicious Transaction Reports with the RBI or the Financial Intelligence Unit.
This scam operated through more than 50 companies in Delhi and Karnataka, with operations spilling over into Maharashtra and Gujarat. ED is now tracing the cash trail, closing in on crypto fraud.
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This bust is a wake-up call to everybody riding the crypto wave in India. Always DYOR, folks.
