Paytm: Not Received New Notice, Query From ED

Paytm On Facing Probe In Cryptocurrency Scam

Paytm Responds To Reports Of Probe In Crypto Scam

There were media reports claiming that the Enforcement Directorate (ED) is investigating eight payment gateways including Paytm in a crypto scam case. However, the fintech firm has said this Friday that it did not receive any such notice, query, or communication.

Paytm has been facing media reports suggesting that it is one of the companies that the ED is investigating in connection with a cryptocurrency scam.

What’s The Matter - Paytm News

As per the latest crypto news India, the Election Directorate is doing an investigation to get details on a scam involving 10 Chinese nationals. Because the news included Paytm in the list of the companies involved, the shares of One97 Communications fell 8.4%. One97 Communications owns the Paytm brand; the shares fell but also recovered partially to close at 5 % lower on BSE.

Paytm Responds To The News

The company denied the news, calling it “factually incorrect and misleading.” Paytm confirmed not receiving any such communication from the ED regarding the matter. 

It also drew attention to a previous letter of 2022, which speaks of the ED’s search operations involving several merchants whom the company provided payment processing solutions. Paytm said that the current media reports are similar to such old enquiries that concerned only third-party merchants.

Further speaking on the matter, the fintech firm also said in a BSE filing, that while these merchants are independent entities and not a part of their group, the firm has been entirely cooperative with the authorities, complying with all their directives.

Paytm Clarifies Further

Paytm’s clarifications regarding the matter come with its conclusion that there’s been no probe on either of the company or its subsidiaries, and that the ED’s probe is basically concerned with third-party merchants.

Finally, the firm has urged investors and stakeholders to not rely on unverified media reports. Paytm assured that it will promptly disclose any such material developments, in case they happen, as per SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.