ED arrests WinZO founders over alleged money laundering; ₹505 crore frozen

ED claims gaming firm withheld players' funds after real-money gaming ban; company denies wrongdoing, says it operates with fairness and compliance

The Enforcement Directorate (ED) has arrested WinZO founders Saumya Singh Rathore and Paavan Nanda in connection with an alleged money laundering probe linked to online gaming operations. The two entrepreneurs were taken into custody in Bengaluru on Wednesday after being questioned at the agency’s zonal office.

 

Later, they were produced before a local court, which granted the ED one-day custody. They are expected to be presented again for further orders, news agency PTI reported.

Allegations of withheld funds, illegal operations

The ED has claimed that WinZO continued operating real-money gaming (RMG) even after such platforms were banned nationwide on August 22, 2025. In its earlier statement, the agency alleged that about ₹43 crore belonging to players was held back instead of being refunded following the ban.

 

 

According to the probe team, users were made to participate in games controlled by software-based algorithms rather than competing against real players, a detail that was allegedly not disclosed to customers. The ED has accused the firm of generating illegal gains from players who lost money in these games. 

 

Officials further alleged that WinZO was operating the same RMG platform for users in countries such as Brazil, the US and Germany, while the backend operations were run entirely from India.

Assets worth ₹505 crore frozen 

During searches last week at WinZO and another gaming company Gamezkraft, the ED said it uncovered financial irregularities under the Prevention of Money Laundering Act (PMLA). Assets including bonds, mutual funds and fixed deposits valued at around ₹505 crore have been frozen.

 

Investigators also claimed that about $55 million (nearly ₹490 crore) linked to WinZO was kept in a US-based shell company, despite operations and banking activities being controlled from India. Some funds were also allegedly routed to Singapore under the pretext of overseas investments.

WinZO rejects charges

Responding to the allegations, a WinZO spokesperson said the platform remains committed to fairness, transparency and user protection. The company stated that it complies with all applicable laws and will cooperate with authorities throughout the process.

 

The agency has levelled similar allegations against Gamezkraft as the investigation continues.

 

(With inputs from PTI)