ED froze ₹192 cr WinZO assets after uncovering alleged cheating schemes
ED identified ₹802 cr criminal proceeds from deceptive AI matches
Funds totaling $54 mn allegedly siphoned to US-based shell company
The Directorate of Enforcement (ED) on Tuesday froze assets worth around ₹192 crore belonging to Zo Games Pvt Ltd, a wholly owned Indian subsidiary of online gaming platform WinZO, following search operations conducted under the Prevention of Money-Laundering Act (PMLA). The frozen assets, comprising bank balances, fixed deposits and mutual fund investments, are part of a wider investigation in which the agency has so far identified about ₹802 crore as alleged proceeds of crime.
ED Findings
According to the ED, material recovered during the searches points to deceptive practices on WinZO’s real-money gaming platform. Investigators allege that users were made to compete against bots, AI systems or algorithm-driven “personas” without being informed that they were not playing against real human opponents. The agency has also claimed that in certain cases the platform restricted or prevented customer withdrawals, while earning substantial “rake commission” from games in which bots were pitted against real users.
1 January 2026
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The ED estimates that WinZO generated around ₹177 crore in such winnings between May 2024 and August 2025, and approximately ₹557 crore between April 2022 and December 2023. The probe remains ongoing, with the agency continuing to examine fund flows, platform operations and the role of overseas entities linked to the alleged laundering of proceeds.
The enforcement agency further alleged that part of the proceeds were routed overseas as purported investments. Investigators found funds of about $54 million parked in a U.S. bank account held in the name of “WINZO US Inc.”, which the ED described as a shell company whose operations were run from India. The probe into cross-border fund flows and related entities is ongoing, the agency added.
WinZO’s Troubled History
The latest action follows a series of enforcement steps taken earlier this year. In November, the ED arrested WinZO co-founders Paavan Nanda and Saumya Singh Rathore and froze assets worth more than ₹505 crore under the PMLA after conducting search and seizure operations at company offices and residential premises. Rathore was later granted bail by a Bengaluru sessions court, while the court denied bail to Nanda.
WinZO has challenged parts of the enforcement action in court. Before the Karnataka High Court, the company argued that the quantum of assets frozen was disproportionate and sought to have certain searches declared invalid. The High Court has asked the ED to examine a proposal to de-freeze some bank accounts against a bank guarantee of ₹505 crore, and has also sought detailed disclosures relating to WinZO’s domestic and overseas affiliates.
ED Crackdown on Real Money Gaming
The ED said the WinZO case is part of an intensified enforcement phase in 2025 that has also seen probes into several other gaming and start-up-origin companies. These developments follow the central government’s blanket ban on real-money gaming imposed in August last year, after which many platforms suspended such offerings and pivoted their business models.
WinZO, founded in 2018 and backed by investors including Courtside Ventures, Makers Fund and Kalaari Capital, has raised more than $110 million to date and has reportedly expanded into overseas markets and short-form video products following the domestic ban.
Investigations by the ED remain ongoing, and the agency said it will continue to pursue leads both within India and internationally as it examines the alleged manipulation, fund flows and other financial irregularities linked to the case.
