Paytm shares nosedived over 8% on Friday, hitting ₹773.90 at their lowest point, following reports linking the fintech giant to an alleged cryptocurrency scam under investigation by the Enforcement Directorate (ED). The market reaction was swift, wiping out weeks of gains in a single morning. The report, published by Times of India, alleges that Paytm and seven other payment gateways were implicated in a ₹2,200 crore cryptocurrency scam operated via the HPZ Token app. The scam, masterminded by 10 Chinese nationals, reportedly duped investors across 20 states by promising returns from cryptocurrency mining. While much of the money was funneled abroad, around ₹500 crore was frozen in virtual accounts tied to these gateways, with Paytm accounting for ₹2.8 crore of the frozen funds. Paytm’s parent company, One 97 Communications, was quick to dismiss the allegations, calling them outdated and factually incorrect. In a regulatory filing, the company stated it had not received any new notices or communications from the ED, clarifying that the probe referenced in media reports pertains to historical inquiries involving independent third-party merchants—not Paytm itself. The company emphasized its full cooperation with authorities in the past and assured investors that any material developments would be disclosed in compliance with SEBI regulations.