ED arrests WinZO founders over money laundering charges

In a major crackdown on the online gaming industry, the Enforcement Directorate (ED) has arrested Saumya Singh Rathore and Paavan Nanda, founders of the popular real-money gaming platform WinZO, in Bengaluru on charges of money laundering. The duo, who serve as directors of WinZO Games Pvt Ltd, were produced before a local court and sent to one-day custody, with the ED scheduled to present detailed arguments on Thursday morning.

Officials said the arrests followed intense questioning at the ED’s zonal office and came on the heels of extensive search operations conducted across Bengaluru and Gurugram under the Prevention of Money Laundering Act (PMLA), 2002. The searches spanned corporate offices, residential premises of directors, and affiliated companies, including Gameskraft Technologies Pvt Ltd and Nirdesa Networks Pvt Ltd, in connection with allegations of large-scale fraud, manipulated game outcomes, and other irregularities.

According to the ED, the company continues to hold around Rs 43 crore of players’ funds, which, under government regulations, should have been refunded following the Union government’s ban on real-money gaming. During the operations, authorities seized mobile phones, laptops, and voluminous data backups from company premises, while eight bank accounts with balances of Rs 18.57 crore have been frozen.

A spokesperson for WinZO responded, stating, “Our focus remains on protecting our users and ensuring a secure, trustworthy experience,” asserting that the company continues to comply with applicable laws.

The ED’s probe comes amid mounting concerns over the handling of user funds in the online gaming ecosystem, with over Rs 30 crore still reportedly trapped in escrow accounts, awaiting refund to gamers and customers even after the government’s ban.

With the spotlight firmly on the gaming giants, investigators are meticulously combing through records and digital evidence, seeking to unravel the complex web of financial transactions and ensure accountability for millions of affected players across the country.

With IANS inputs