ED Crackdown on WinZO: Founders Saumya Rathore & Paavan Nanda Arrested on Money Laundering Charges

Days after searches were conducted at the premises of WinZO Games Pvt Ltd, during which assets worth over ₹505 crore were frozen, the Enforcement Directorate (ED) on Wednesday arrested founders Saumya Singh Rathore and Paavan Nanda on charges of money laundering, Indian Express reported.

“Saumya and Paavan, directors of Winzo Games Pvt Ltd, were arrested yesterday, and they were produced before the home office of the Hon’ble judge. The court has given them ED custody and directed the agency to produce them at 11:30 am today [November 27], for detailed arguments, on the remand application filed by the department,” A source quoted in the report stated.

The Charges

The ED confirmed that the arrests are tied to an alleged money laundering investigation involving WinZO’s online gaming operations. Both founders were taken into custody in Bengaluru on Wednesday following questioning at the agency’s zonal office.

This comes after ED announced on Monday that it had frozen proceeds of crime valued at approximately ₹505 crore belonging to WinZO. These assets, which include bank balances, bonds, fixed deposits, and mutual funds, were seized under Section 17(1A) of the Prevention of Money-Laundering Act (PMLA), 2002.

The action followed a series of raids conducted last week at the offices of online gaming platforms Gameskraft and WinZO across Bengaluru, Delhi, and Gurugram. The move marks an escalation in the agency’s scrutiny of real-money gaming companies amid intensified enforcement efforts within the sector.

ED Raid on WinZO

Between November 18 and 22, 2025, the ED’s Bengaluru Zonal Office carried out search operations at four locations in Delhi and Gurgaon linked to WinZO Games under the PMLA. Investigators found proceeds of crime worth approximately ₹505 crore held in various financial instruments.

The probe began after multiple FIRs alleged cheating, misuse of PAN details, blocked accounts, impersonation, and fraudulent practices, including the misuse of customers’ KYC information.

According to the ED, WinZO continued operating real-money games in markets such as Brazil, the United States, and Germany even after the Union Government banned such games on August 22, 2025. The company allegedly retained ₹43 crore without refunding affected users.

The investigation further revealed that WinZO used software and algorithms to play against customers without disclosure, restricted withdrawals of wallet balances, and generated illicit gains from bets lost by real players. Authorities also found that the company’s global gaming operations were run through a single platform from India, while funds were diverted abroad under the guise of overseas investments. Approximately USD 55 million (₹489.90 crore) was reportedly held in bank accounts of WinZO US Inc, which the ED described as a shell entity controlled from India. The investigation remains ongoing.

Responding to the developments of frozen assets, a WinZO spokesperson said, “We have been cooperating fully with the investigating agency and will continue to support the process. 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. WinZO remains fully compliant with all applicable laws.”