Chinese built websites as payment gateways for banned Apps in 1000 Cr fraud: ED suspects

Hyderabad : The sleuths of Enforcement Directorate, Hyderabad to grill Chinese national Yan Hoa accused in multi crore online gaming scam. payment gateways

A special court in Hyderabad hearing ED cases has granted 8 days custody of Yan Hao and two others Dhiraj Sarkar and Ankit Kapoor booked for money laundering.

The central agency took up the investigation based on an FIR registered by Cyber Crime Station (CCS) Hyderabad against M/s Dokypay Technology Private Limited , M/s Linkyun Technolgy Private Limited and others involved in online betting scam.

Preliminary investigation found, the accused floated a large number of websites to attract gullible persons to become members and to place bets on various online APPs which promised attractive rewards on simple games of chance.

Money payment gateways like Paytm and Cashfree were used to collect money and pay commission to all these agent members. Hundreds of websites were created to promote online betting under the garb of e-commerce. ED searches in Delhi, Gurgaon, Mumbai and Pune which resulted in seizure of 17 Hard disks, 5 laptops, phones and crucial incriminating documents.

The agency has also frozen Rs 46.96 Crore held in 4 Accounts in HSBC Bank.“It is suspected that these websites were also acted as payment aggregators for multiple APPs which were banned by Google Play Store for lax technical security, data theft or betting activities. These accused companies were also planning to set up a NBFC for micro credits but their license was declined by regulatory authorities” Investigation found. payment gateways

According to preliminary investigation,The quantum of fraud may be more than Rs 1000 Crore.Investigation under PMLA to identify the major beneficiaries of the Payouts from Paytm and HSBC Bank Accounts is under progress.