Paytm Denies New Notice from ED Amid Reports of Crypto Scam

By / / Crypto News, Daily News
Paytm Denies New Notice from ED Amid Reports of Crypto Scam
Table Of Contents
  1. The Allegations
  2. Key Takeaways from Paytm's BSE Filing
  3. Impact on Paytm Shares
  4. What’s Next?
  5. Conclusion

The Allegations

Recent media reports claimed that the Enforcement Directorate (ED) is probing eight payment gateways, including Paytm, based on a complaint related to a cryptocurrency scam. These allegations have caused significant apprehension, particularly among investors, as One97 Communications—the parent company of Paytm—experienced an 8.4% erosion in its share value, before partially recovering to close 5% lower on the BSE.

Paytm strongly rejected these claims, labeling the reports as “factually incorrect and misleading.” The fintech giant provided the following clarifications:

No Notice or Communication

  • Paytm has not received any notice, query, or communication from the ED regarding the alleged investigation.

Past Investigations Clarified

  • The company referred to a similar incident in 2022 when the ED conducted searches related to third-party merchants using Paytm’s payment processing solutions.

Independence of Third-Party Merchants

  • Paytm emphasized that these merchants are independent entities and are not owned or operated by the company or its subsidiaries.

Key Takeaways from Paytm’s BSE Filing

  • Paytm reiterated its full cooperation with authorities during previous investigations involving third-party merchants.
  • The company assured stakeholders that it would adhere to disclosure norms under SEBI regulations and immediately share any material updates.

Impact on Paytm Shares

The allegations caused significant investor anxiety, leading to a sharp dip in One97 Communications’ share price. Although the stock partially recovered, the market reaction highlights the sensitivity to regulatory and compliance-related concerns in the fintech sector.

What’s Next?

Clarifications Awaited

  • The ED is reportedly investigating a scam involving 10 Chinese nationals, but no confirmation has been made linking Paytm directly to the probe.

Paytm’s Assurance

  • Paytm has urged stakeholders to dismiss unverified reports and has promised transparency in all future developments.

Conclusion

As of now, Paytm believes it is not under investigation, with the ED’s focus appearing to be limited to independent third-party merchants. The fintech giant is taking proactive steps to regain investor confidence and dispel rumors regarding its involvement in the cryptocurrency scam.

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