ED conducted the raids after busting a betting racket in Hyderabad. The Hyderabad Cyber Police had arrested three persons, including a Chinese national, by registering a case against Dokypay Technology Private Ltd and Linkyun Technology Pvt Ltd.
The Enforcement Directorate (ED) on Saturday conducted raids at 15 locations in Delhi, Gurugram, Mumbai and Pune and busted a huge online betting racket involving Chinese companies worth Rs 1,268 crore. The ED seized Rs 46.96 crore deposited in four HSBC Bank accounts. In addition, five laptops, 17 hard disks, phones and key documents were also seized.
ED conducted the raids after busting a betting racket in Hyderabad. The Hyderabad Cyber Police had arrested three persons, including a Chinese national, by registering a case against Dokypay Technology Private Ltd and Linkyun Technology Pvt Ltd.
Large network of Chinese companies in India
The investigation into the Hyderabad case revealed that Chinese companies were running a large network of betting in India. Chinese citizens stayed in China and first opened a number of companies with the help of chartered accountants in India and made Indians dummy directors. Accounts were also opened in the HSBC Bank India through these people.
After some time, these Chinese nationals came to India and took the ownership of the companies. Also, the user ID and password were sent to China to use the bank account online so that the money could be transacted. Paytm, Cashfree, Razorpay wallets, along with bank accounts, were also opened, through which money was also being traded.
Dokypay Technology Private Ltd statement
Dokypay CEO Yang Ming (Yang Ming) has reacted to the case and in a statement, he said "Dokypay is a local payment service provider that helps a merchant collect payments from several countries. The company serves international markets such as India, Indonesia and Vietnam. Linkyun Technology Private Lmited, Dokypay Technology Private Limited and Spotpay Technology India Private Limited are the Indian subsidiaries of all three Beijing T Power Technologies Private Limited. Who have their own payment gateways and groups in India.
"Dokypakypay is committed to complying with the acts of all law and regulatory entities of the country concerned during operations. As a payment gateway and group, we adhere to all standards listed under Indian laws.
"As a technical service provider, where merchant access is concerned, we have taken necessary steps to ensure related concerns and the cradle of the law. We audit merchants with great care. The merchant also gives necessary information related to his business in the service agreement signed by both parties. In which information about complying with local rule laws is in writing.
"As a responsible institution, we take care of ethics in methodology. Dokypay has never been involved in such activities and we will not participate in any illegal activities in the future as well. We are the highest ideals, so we are cooperating with the investigation of the Indian institutions concerned."
Tricks to avoid investigative agencies
These Chinese companies had created a number of betting websites, which were being run through Cloudfare from the US. Through these websites, people in India were cheated for betting and then betting through the app. These Chinese nationals had hired their agents, who prepared new ones for betting.
Not all websites were active every day to avoid coming into the radar of the dinvestigative agencies. For this, the group was set up on Telegram and Whatsapp, which was provided with active website information.
Rs 1,268 crore earned from betting last year
The documents that ED recovered during the raids revealed that Dokypay Technology Pvt Ltd earned Rs 1,268 crore from betting last year. Rs 300 crore came from Paytm and Rs 600 crore was sent from Paytm. Linkyun Technology also brought out similar money transactions. These accounts have also revealed turnover of Rs 120 crore in foreign exchange. In addition, money transactions have also been detected with the ongoing online Chinese dating app in India.
The Enforcement Directorate, after investigation, suspects that apart from betting, these companies are also doing hawala business through wallets and bank accounts. Ed has, therefore, sought all transaction information from wallet companies and HSBC.
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