Paytm Shares Drop Over 8% Amid ED Investigation

Paytm share price took a significant hit on Friday, falling by more than 8% after a report revealed that the company is under investigation by the Enforcement Directorate (ED) for alleged involvement in a cryptocurrency scam. Paytm’s shares dropped as much as 8.84%, reaching ₹773.90 on the BSE.

Details of the Investigation

One 97 Communications, Paytm’s parent company, is one of eight payment gateways being scrutinised by the ED. The investigation focuses on their suspected involvement in a crypto scam led by 10 Chinese nationals using the HPZ Token app. The accused are alleged to have gathered over ₹2,200 crore from individuals in 20 states by promoting cryptocurrency mining investments.

The ED has frozen around ₹500 crore in virtual accounts, and the company is looking into whether these payment gateways failed to report suspicious transactions as required by financial regulations. Among the frozen amounts, Paytm’s share was ₹2.8 crore, while PayU, Easebuzz, Razorpay, and CashFree held larger amounts.

Paytm’s Stock Performance

Despite the recent drop, Paytm shares have shown strong growth over the past 6 months, gaining 81%. In the last year, the stock price increased by 10%, and it has gained over 52% in 2 years. However, the stock has declined by 16% in the last month.

Other Developments in the Case

In a related case, a court in Nagaland declared Bhupesh Arora, a Delhi resident, a fugitive economic offender after he failed to appear for court hearings. Arora, who fled to Dubai in 2022, is linked to the cryptocurrency scam, and the ED has filed charges against 298 individuals involved.

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