ED Arrests WinZO Founders in ₹523 Crore Money Laundering Case
Gaming platform accused of holding gamers’ funds, running real-money games abroad despite Indian ban
Saumya Singh Rathore and Paavan Nanda produced in Bengaluru court; ED freezes assets worth over ₹500 crore
By Our Legal Reporter
New Delhi: November 27, 2025:
The Enforcement Directorate (ED) has arrested the co-founders of online gaming platform WinZO, Saumya Singh Rathore and Paavan Nanda, on charges of money laundering. The arrests, made in Bengaluru on November 26, 2025, mark one of the biggest crackdowns on India’s online gaming industry, which has faced increasing scrutiny over allegations of fraud, illegal betting, and misuse of player funds.
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The Arrests
According to officials, Rathore and Nanda were taken into custody after hours of questioning at the ED’s Bengaluru zonal office. They were produced before a local court the same night and remanded to one-day custody. The court is expected to hear detailed arguments in the coming days.
The arrests came just days after the ED froze ₹523 crore worth of deposits belonging to WinZO and another gaming company, Gameskraft.
Allegations Against WinZO
The ED alleges that WinZO:
- Held ₹43 crore of gamers’ funds that should have been refunded after India banned real-money gaming.
- Continued to operate real-money games abroad (Brazil, US, Germany) from India, despite restrictions.
- Engaged in unscrupulous practices, including making customers unknowingly play against algorithms instead of real opponents.
- Misused PAN details and blocked accounts, according to FIRs filed earlier.
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Officials claim that these practices amount to cheating and money laundering under the Prevention of Money Laundering Act (PMLA).
ED’s Crackdown
The arrests are part of a wider crackdown on online gaming companies. Earlier this month, ED conducted raids across Delhi, Gurugram, and Bengaluru, seizing documents and freezing assets.
The agency has stated that the proceeds of crime in this case amount to hundreds of crores, with funds allegedly diverted through complex financial channels.
Industry Impact
WinZO, founded in 2018, quickly became one of India’s most popular gaming platforms, offering multiplayer games and real-money contests. The company had raised significant venture capital funding and was seen as a rising star in India’s gaming ecosystem.
However, the arrests of its founders have sent shockwaves through the industry. Investors and players alike are questioning the future of real-money gaming in India, especially after the government’s ban on such platforms earlier this year.
Legal Proceedings
The ED has indicated that Rathore and Nanda will face charges under PMLA, which carries severe penalties, including imprisonment and confiscation of assets.
The Bengaluru court has directed the ED to present detailed evidence, including financial records, transaction trails, and customer complaints.
Public Reaction
The case has sparked widespread debate:
- Gamers: Many players have expressed anger over withheld funds, demanding refunds and stricter regulation.
- Legal experts: Lawyers argue that the case highlights the need for clear laws governing online gaming and digital transactions.
- Industry voices: Some gaming companies fear that the crackdown could hurt innovation, while others welcome stricter oversight to weed out bad actors.
Government’s Stand
The Indian government has maintained that real-money gaming platforms encourage gambling and financial exploitation, especially among youth. The Ministry of Electronics and IT (MeitY) has already banned several apps, citing risks to public order and financial integrity.
The ED’s action against WinZO is seen as part of this broader policy push to regulate online gaming and prevent misuse of digital platforms.
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Broader Implications
The WinZO case raises several important questions:
- Consumer protection: How can players be safeguarded against fraud in online gaming?
- Regulatory clarity: Should India create a dedicated framework for online gaming, distinguishing skill-based games from gambling?
- Global operations: How should Indian companies be monitored when they run gaming platforms abroad?
Experts suggest that India may need a Gaming Regulatory Authority to oversee licensing, compliance, and consumer rights.
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What’s Next
The ED is expected to continue its investigation, possibly expanding to other gaming companies. More arrests could follow as evidence is analysed.
For WinZO, the immediate future looks uncertain. With its founders in custody and assets frozen, the company faces a major credibility crisis.
The case will likely set a precedent for how India deals with online gaming platforms accused of financial misconduct.
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