Shocking Arrest: WinZO Founders Saumya Singh Rathore & Paavan Nanda Brought Down by ED in Explosive Money Laundering Case!
The Enforcement Directorate (ED) has taken significant action against WinZO, an online money gaming platform, arresting its founders, Saumya Singh Rathore and Paavan Nanda, on money laundering charges. The arrests occurred in Bengaluru on Wednesday after the founders were interrogated at the agency’s zonal office. Following their questioning, the duo was presented in a local court the same evening, where they were granted one day of custody. A further court appearance is expected for a detailed ruling.
This development comes after the ED alleged that approximately ₹43 crore meant for gamers was retained by WinZO, particularly after the central government imposed a ban on real-money gaming. The agency previously conducted raids on WinZO and another gaming firm, Gamezkraft, under the Prevention of Money Laundering Act (PMLA), citing concerns over the legitimacy of their business practices. The ED’s investigation revealed claims that players were enticed to engage with algorithms, obscuring the fact that they were interacting with software rather than real opponents in these real-money games.
The Enforcement Directorate highlighted that WinZO has been operating real-money gaming ventures in various countries, including Brazil, the United States, and Germany, using the same platform employed by its Indian operations. The agency noted that despite the ban on real-money games effective from August 22, 2025, WinZO continued to hold onto ₹43 crore without refunding players.
In an effort to mitigate potential losses linked to these allegations, the ED has frozen assets, including bonds, fixed deposits, and mutual funds valued at ₹505 crore, associated with WinZO Games. WinZO, responding to the charges, emphasized its commitment to fairness and transparency in its business operations, asserting its compliance with applicable laws. A spokesperson stated, “Our focus remains on protecting our users and ensuring a secure, trustworthy experience.”
According to the ED, WinZO has restricted or delayed withdrawals from user accounts, allegedly generating illicit funds through bets placed by customers, utilizing the software in a questionable manner. The agency raised concerns about WinZO’s operational structure, indicating that its global activities were conducted through a single app hosted in India. It also charged that funds had been rerouted to the United States and Singapore under the guise of overseas investments, revealing that approximately USD 55 million (about ₹489.90 crore) has been deposited in a US bank account allegedly belonging to a shell company, with the actual operations remaining based in India.
The unfolding investigation continues to raise questions about the ethical practices of online gaming companies in the rapidly growing digital space, reflecting growing scrutiny from regulatory bodies over financial operations in the gaming industry. As events progress, the ED’s actions serve as a critical juncture for how online gaming platforms may need to navigate legal challenges in the future.
This story reflects broader concerns within the gaming sector regarding regulatory compliance and the responsibilities of operators in safeguarding consumer funds and implementing fair business practices.
Original Source: https://www.livemint.com/news/india/ed-arrests-gaming-platform-winzo-founders-saumya-singh-rathore-and-paavan-nanda-on-money-laundering-charges-11764211617781.html
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Publish Date: 2025-11-27 08:18:00
