The Enforcement Directorate (ED) has arrested WinZO co-founders Saumya Singh Rathore and Paavan Nanda in connection with a money laundering investigation related to the company’s online gaming operations. The arrests took place in Bengaluru on Wednesday after several hours of questioning at the agency’s zonal office.
Following the detention, the two were taken to a Bengaluru court the same night. The court granted the ED one-day custody, and the founders are expected to be brought before the court again for further judicial proceedings.
This case arises from allegations that WinZO continued to operate its platform for real-money gaming (RMG) following the August 22, 2025, ban by the Government of India.
According to the ED, approximately Rs. 43 crore belonging to players was retained by the company instead of being refunded when the ban came into effect.
The agency also stated that users were allegedly made to play against software algorithms rather than real opponents, without this distinction being clearly disclosed.
According to ED officials, WinZO’s international users in Brazil, Germany, and the United States operated using the same technology stack as WinZO’s platform for Indian users and utilised servers located in India to host its backend operations.
The agency contends that WinZO continued offering RMG services overseas despite the Indian ban, violating regulatory norms.
During the probe, investigators also claimed that funds from the Indian entity were moved abroad under the pretext of investments.
Around $55 million (Rs. 489.9 crore) was reportedly held in a US-based shell company, even though the day-to-day operations and control of the bank account were allegedly managed from India. Some funds were also routed to Singapore, according to ED findings.
Last week, the ED conducted searches at the premises of WinZO and another gaming firm, Gamezkraft, under the Prevention of Money Laundering Act (PMLA).
The agency announced that it had frozen bonds, fixed deposits, and mutual fund holdings valued at around Rs. 505 crore belonging to WinZO Games.
According to ED, WinZO restricts or delays user withdrawals and generates illegal revenues via rigged games.
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In response to the claims, WinZO said that it builds its user experience around the values of fairness, transparency, and user safety. WinZO said it remains fully compliant with current laws and will cooperate closely with law enforcement during this investigation.
The ED’s probe into WinZO and Gamezkraft is ongoing, and more financial details are expected to emerge in the coming weeks.