Enforcement Directorate Arrests WinZO Founders for Alleged Money Laundering and Gaming Violations

The Enforcement Directorate has detained WinZO's co-founders Saumya Singh Rathore and Paavan Nanda on charges related to money laundering in Bengaluru.

Following their interrogation at the federal agency's zonal office on Wednesday, the two executives were presented before a local court in Bengaluru. The court granted a one-day custody period, with expectations of another court appearance for a more comprehensive ruling, according to official sources.

Earlier this week, the ED released a statement claiming that approximately Rs 43 crore of gamers' funds were being "held" by WinZO. The agency argued that these funds should have been returned to players following India's ban on real-money gaming activities.

Last week, the ED conducted raids at the premises of both WinZO and another online gaming company, Gamezkraft, along with their promoters under the Prevention of Money Laundering Act (PMLA).

The ED has accused WinZO of engaging in "criminal activities and unscrupulous practices," alleging that customers were unknowingly playing against algorithms rather than actual human players in real-money games. The agency also stated that WinZO was operating real-money gaming services in countries such as Brazil, the United States, and Germany from its Indian operations using the same platform as its domestic entity.

Despite the federal government's ban on real-money games effective August 22, 2025, the ED alleges that "Rs 43 crore is still held by the company without refunding to the gamers/customers."

The agency has frozen bonds, fixed deposits, and mutual funds valued at Rs 505 crore under the PMLA that were reportedly "possessed" by WinZO Games.

In response to these allegations, a WinZO spokesperson stated, "Fairness and transparency are core to how WinZO designs and operates its platform. Our focus remains on protecting our users and ensuring a secure, trustworthy experience." The company maintains that it is "fully compliant with all applicable laws."

The ED further alleged that WinZO restricted withdrawals from customer wallets and generated illegal funds through bet amounts placed and lost by real customers through what they termed as "unscrupulous" algorithmic manipulation.

According to the agency's findings, WinZO's global operations were conducted through a single app hosted on an India-based platform. The ED also claimed that funds from the Indian entity were diverted to the US and Singapore under the pretense of overseas investments.

Approximately USD 55 million (about Rs 489.90 crore) has allegedly been placed in what the ED describes as a shell company's bank account in the US, despite all operations, business activities, and account management being conducted from India.

The agency has made similar accusations against Gamezkraft as part of its ongoing investigation.