India’s Enforcement Directorate (ED) has detained Saumya Singh Rathore and Paavan Nanda, co-founders of the real-money gaming app WinZO, on allegations of money laundering. The arrests occurred in Bengaluru after questioning at the ED’s zonal office, with a local court granting one-day custody pending further hearings.
ED detained WinZO Founders: Check Allegations
Authorities froze assets exceeding Rs 505 crore linked to WinZO, including bank balances, bonds, fixed deposits, and mutual funds, under the Prevention of Money Laundering Act (PMLA). The probe stems from FIRs accusing the platform of fraud, unauthorized account freezes, identity impersonation, and improper use of customer KYC details, leading to significant user losses. ED claims WinZO ran real-money games from India for international markets like Brazil, the US, and Germany despite a domestic ban, withholding around Rs 43 crore in player funds without refunds.
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Operational Irregularities Uncovered
Investigators found evidence of deceptive practices, where users unknowingly competed against algorithms rather than real opponents in cash-based games. Recent raids targeted locations in Bengaluru, Gurgaon, and Delhi, expanding from initial probes into related firms like Gameskraft. WinZO maintains full compliance with regulations and ongoing cooperation with authorities.
Broader Implications for Gaming Sector
This development signals heightened scrutiny on India’s online gaming industry amid concerns over financial misconduct and regulatory adherence. The case highlights risks in real-money platforms, potentially affecting investor confidence and operations. Further court proceedings will determine next steps for the executives and company.
