The Enforcement Directorate (ED) has arrested Saumya Singh Rathore and Paavan Nanda, the founders of online gaming platform WinZO, on charges of money laundering. The arrests were made in Bengaluru on Wednesday following questioning at the ED's zonal office. A local court in Bengaluru remanded them to one-day custody, and they are expected to appear in court again for a detailed order.
The ED's action follows searches conducted last week at WinZO's premises and those of Gameskraft, another online gaming company, under the Prevention of Money Laundering Act (PMLA). The agency has accused WinZO of engaging in "criminal activities and unscrupulous practices," alleging that customers were made to play against algorithms without their knowledge, creating an unfair gaming environment.
According to the ED, WinZO was operating real-money games (RMGs) in countries like Brazil, the US, and Germany from India, utilizing the same platform as its Indian operations. Even after the Indian government banned RMGs on August 22, 2025, the company allegedly held ₹43 crore that should have been refunded to players. The ED also froze assets worth ₹505 crore, including bank balances, bonds, fixed deposits, and mutual funds, under the PMLA.
The ED investigation revealed that WinZO allegedly deployed a concealed algorithm, known as 'PPP' (past performance of player), to generate automated gameplay. This algorithm-driven play misled customers into believing they were competing against real users. The agency claims that this resulted in illicit gains of approximately ₹177 crore for the company and corresponding losses for genuine users over the past 14 months. Furthermore, the ED alleges that WinZO restricted or prevented users from withdrawing money held in their wallets.
The ED also found that funds from the Indian entity were diverted to the US and Singapore in the guise of overseas investments. Approximately ₹489.90 crore was traced to a US bank account operated under WinZO U.S. Inc., which officials described as a shell company controlled from India.
WinZO has denied any wrongdoing. A company spokesperson stated that "Fairness and transparency are core to how WinZO designs and operates its platform" and that the company is committed to protecting its users and ensuring a secure, trustworthy experience. The spokesperson added that WinZO remains fully compliant with all applicable laws.
The ED initiated its investigation based on FIRs filed against WinZO for cheating, blocking accounts, impersonation, and misuse of PAN. Users had reported losses due to alleged fraud and manipulation during gameplay. The investigation also revealed that WinZO allegedly misused customers' KYC information.
In a related development, the ED is expected to summon the founders of Gameskraft Technologies Pvt Ltd (GTPL), another gaming company under investigation. The ED's probe into Gameskraft, along with Pocket52 operator Nirdesa Networks, originated from FIRs alleging manipulation of game outcomes, player collusion, technical glitches, and withheld withdrawals, with users reporting losses of over ₹3 crore. The ED has frozen eight escrow bank accounts holding approximately ₹18.57 crore linked to Nirdesa Networks and Gameskraft.
