ED seizes Rs 46 crore in token fraud based on HPZ app; EaseBuzz, Razorpay, Paytm under scanner – The New Indian Express

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By Express press service

BENGALURU: The Directorate of Law Enforcement (ED) carried out search operations on September 14 at various premises of banks and payment gateways across multiple locations as part of an investigation related to the app-based token named HPZ and related entities.

He seized about Rs 46 crore and various documents about it.

ED said on Friday the search was carried out under the Prevention of Money Laundering Act 2002 (PMLA) at six commercial and residential premises in Delhi, Ghaziabad, Mumbai, Lucknow, Gaya and 16 other premises banks and payment gateways. branches and offices across Locations. This investigation was conducted on the basis of an FIR filed under various sections of the IPC by the Cyber ​​Crime Police Station, Kohima, Nagaland.

The app-based token – The HPZ – had promised users significant gains if they invested in cryptocurrencies such as bitcoin. Fraudsters first entice victims to invest in the business by saying that their investments will double. Payments were received through UPIs and other payment gateways, nodal accounts and individuals.

While part of the amount was paid out to investors, the remaining amount was diverted to various individual and corporate accounts through various payment gateways/banks from where it was partly diverted into digital/virtual currencies. After that, the scammers stopped payments and the website became inaccessible, the polling company said.

READ ALSO | Pan-Indian raids: ED searches 40 locations in Delhi liquor policy case

During the investigation, it was discovered that the HPZ token was operated by Lillion Technocab and Shigoo Technology Private Limited. The agency discovered that Shigoo Technology was linked to various Chinese-controlled companies.

The agency said Mad-Elephant Network Technology, in agreement with X10 Financial Services Limited, operated various lending applications (Yo-Yo cash, Tufan Rupees, Coco cash, etc.).

In addition, Su Hui Technology Private Limited, in agreement with Nimisha Finance India Private Limited, had operated lending apps.

The ED found huge balances in the virtual accounts of entities involved with payment aggregators. Around Rs 33.36 crore was found with EaseBuzz, Pune, Rs. 8.21 crore with Razorpay Software Private Limited, Bengaluru, Rs 1.28 crore with Cashfree Payments India Bengaluru and Rs 1.11 crore with Paytm Payments Services, New Delhi.

Cashfree said in a statement that it continues to expand its cooperation in ED operations. “We were able to provide the required and necessary information within hours on the day of the survey,” Cashfree said.

A spokesperson for EaseBuzz clarified that none of the parties mentioned in the ED statement belong to its merchant base.

“The entities mentioned by the authorities were only the counterparties of the merchant, who used our payment gateway and this merchant had been proactively identified and blocked by us well before the start of the investigation, in accordance with our internal process of risk and compliance,” the spokesperson said. said.

BENGALURU: The Directorate of Law Enforcement (ED) carried out search operations on September 14 at various premises of banks and payment gateways across multiple locations as part of an investigation related to the app-based token named HPZ and related entities. He seized about Rs 46 crore and various documents about it. ED said on Friday the search was carried out under the Prevention of Money Laundering Act 2002 (PMLA) at six commercial and residential premises in Delhi, Ghaziabad, Mumbai, Lucknow, Gaya and 16 other premises banks and payment gateways. branches and offices across Locations. This investigation was conducted on the basis of an FIR filed under various sections of the IPC by the Cyber ​​Crime Police Station, Kohima, Nagaland. The app-based token – The HPZ – had promised users significant gains if they invested in cryptocurrencies such as bitcoin. Fraudsters first entice victims to invest in the business by saying that their investments will double. Payments were received through UPIs and other payment gateways, nodal accounts and individuals. While part of the amount was paid out to investors, the remaining amount was diverted to various individual and corporate accounts through various payment gateways/banks from where it was partly diverted into digital/virtual currencies. After that, the scammers stopped payments and the website became inaccessible, the polling company said. READ ALSO | Pan-India raids: ED seeks 40 locations in Delhi liquor policy case. It was discovered during the investigation that the HPZ token was operated by Lillion Technocab and Shigoo Technology Private Limited. The agency discovered that Shigoo Technology was linked to various Chinese-controlled companies. The agency said Mad-Elephant Network Technology, in agreement with X10 Financial Services Limited, operated various lending applications (Yo-Yo cash, Tufan Rupees, Coco cash, etc.). In addition, Su Hui Technology Private Limited, in agreement with Nimisha Finance India Private Limited, had operated lending applications. The ED found huge balances in the virtual accounts of entities involved with payment aggregators. Around Rs 33.36 crore was found with EaseBuzz, Pune, Rs. 8.21 crore with Razorpay Software Private Limited, Bengaluru, Rs 1.28 crore with Cashfree Payments India Bengaluru and Rs 1.11 crore with Paytm Payments Services, New Delhi. Cashfree said in a statement that it continues to expand its cooperation in ED operations. “We were able to provide the required and necessary information within hours on the day of the survey,” Cashfree said. A spokesperson for EaseBuzz clarified that none of the parties mentioned in the ED statement belong to its merchant base. “The entities mentioned by the authorities were only the counterparties of the merchant, who used our payment gateway and this merchant had been proactively identified and blocked by us well before the start of the investigation, in accordance with our internal process of risk and compliance,” the spokesperson said. said.


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