Have WinZO Founders Been Arrested Over Money Laundering Charges?
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Synopsis
In a shocking turn of events, the Enforcement Directorate has detained WinZO founders over serious money laundering accusations, raising questions about the platform's operations. WinZO claims compliance with laws, but the investigation reveals hefty amounts held without refunds to players post the gaming ban.
Key Takeaways
- WinZO founders arrested on money laundering charges.
- Rs 43 crore allegedly held by the company.
- Investigation linked to real-money gaming ban.
- ED has frozen eight bank accounts in connection with the case.
- WinZO claims compliance with all applicable laws.
Bengaluru, Nov 27 (NationPress) The Enforcement Directorate (ED) has apprehended the co-founders of the online gaming platform WinZO, Saumya Singh Rathore and Paavan Nanda, on allegations of money laundering.
As per officials, their arrest took place in Bengaluru after they were interrogated at the financial regulator's zonal office.
Rathore and Nanda, who serve as Directors of WinZO Games Pvt Ltd, were presented before a judge and subsequently remanded to one-day custody by the court.
The court instructed the ED to bring them back at 11:30 a.m. on Thursday for in-depth discussions regarding the remand application submitted by the Department, according to official sources.
The ED's actions followed recent searches carried out by the agency. The ED claims that an amount of Rs 43 crore belonging to gamers was being ‘held’ by the company.
According to the regulatory body, this money ought to be refunded to players after the ban on real-money gaming in India.
In a public statement, WinZO emphasized that "Our focus remains on safeguarding our users and ensuring a secure, trustworthy experience," asserting that they fully comply with all relevant laws.
Previously, the ED had conducted raids at the offices of WinZO and Gamezkraft, another online gaming company, under the Prevention of Money Laundering Act (PMLA).
The ED executed search operations under PMLA 2002 at multiple sites across Bengaluru and Gurugram.
According to an official, the raids included the office of Nirdesa Networks Pvt. Ltd. (NNPL), Gameskraft Technologies Pvt. Ltd. (GTPL), and the residential locations of its Directors and other accused or suspected individuals, amid allegations of large-scale fraud, manipulated game outcomes, and other claims, as per an official statement released on Monday by the ED.
As a result of the raids, eight bank accounts holding a total of Rs 18.57 crore have been frozen. The raids were conducted between November 18 and November 22. "During the search operations, incriminating items such as mobile phones and laptops have been confiscated," stated an official.
Incriminating devices like mobile phones and laptops were collected from the premises of the company's Directors/Founders, with extensive data backups secured from Gameskraft Technologies Pvt Limited.
Despite the ban on Real Money Games by the Union government, over Rs 30 crore remains in the company’s escrow accounts without being refunded to gamers and customers.
Point of View
I observe that the arrest of WinZO's founders underscores the growing scrutiny faced by online gaming platforms in India. The ED's actions reflect a stringent approach towards financial compliance and consumer protection in the gaming industry. While WinZO asserts its legal adherence, the situation calls for a broader examination of accountability within online gaming.
NationPress
27/11/2025
Frequently Asked Questions
What are the charges against WinZO founders?
The founders of WinZO are facing charges of money laundering, with allegations that they have held large sums of money belonging to gamers.
What is the current status of the investigation?
The Enforcement Directorate has conducted raids and frozen bank accounts linked to WinZO, and the founders have been remanded for further questioning.
How much money is involved in this case?
The investigation involves claims of Rs 43 crore being held by WinZO, which should be refunded to players.
What does WinZO say about the allegations?
WinZO has stated that its focus is on protecting users and ensuring compliance with laws, asserting that it operates in a secure and trustworthy manner.
What actions has the ED taken so far?
The ED has executed searches across various locations, frozen bank accounts, and seized incriminating devices as part of its investigation.
