The Enforcement Directorate (ED) has arrested WinZO co-founders Saumya Singh Rathore and Paavan Nanda in connection with a money-laundering investigation involving the online gaming platform. The arrests come days after the ED froze collective deposits worth approximately ₹523 crore linked to WinZO and another gaming company, Gameskraft Technologies Pvt Ltd.
What triggered the crackdown
- The ED initiated the investigation following multiple complaints alleging cheating, unauthorised account blocking, misuse of KYC data, and impersonation of users.
- Despite a nationwide ban on real-money gaming (RMG) from August 22, 2025, WinZO allegedly continued operations and withheld around ₹43 crore that belonged to users.
- The agency claims WinZO used software algorithms instead of real human players, leading to unfair outcomes and illicit gains.
- Additionally, the ED alleges that funds were diverted abroad, with around USD 55 million (approximately ₹490 crore) allegedly parked in foreign accounts.
Arrests and legal action
The founders were taken into custody in Bengaluru after hours of questioning at the ED’s zonal office. They were presented before a local court and remanded to one-day ED custody. Further remand proceedings are expected.
Implications for users and the gaming industry
- Users whose funds were stuck on WinZO may potentially recover their money as the investigation progresses.
- The case underscores the increasing regulatory scrutiny on online real-money gaming platforms, especially those operating in violation of the ban or engaging in fraudulent practices.
- Allegations of rigged games, misuse of KYC data, and fund diversion could lead to stricter enforcement, prompting other platforms to adhere strictly to legal and ethical standards.
WinZO’s response
WinZO stated that it is fully cooperating with the ED investigation and emphasized that fairness and transparency are central to its operations. The company claims to be compliant with all applicable laws.
Conclusion
The arrest of WinZO’s founders and freezing of over ₹523 crore in assets marks a significant escalation in India’s crackdown on unregulated real-money gaming. The outcome of the ED investigation could impact user refunds, reshape industry practices, and redefine regulatory measures for online gaming in India.
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