WinZO Founders Arrested by ED on Money Laundering Charges in India

Key Arrests in Online Gaming Probe

The Enforcement Directorate (ED) in India has arrested Saumya Singh Rathore and Paavan Nanda, the co-founders of the online money gaming platform WinZO, on charges of money laundering. The arrests took place in Bengaluru on Wednesday, November 27, 2025, following extensive questioning at the federal probe agency's zonal office. Both founders were subsequently produced before a local court, which granted the ED one-day custody.

The action is part of a broader investigation into alleged financial irregularities within the online gaming sector. The ED had previously conducted searches across Bengaluru, Gurgaon, and Delhi, leading to the freezing of assets worth over ₹523 crore, with approximately ₹505 crore specifically linked to WinZO.

Allegations and Investigation Details

The ED's investigation was initiated based on multiple First Information Reports (FIRs) filed against WinZO and others. These FIRs included allegations of:

• Cheating and fraudulent activities, including the misuse of Know Your Customer (KYC) details.
• Blocking user accounts and impersonation.
• Misuse of PAN details.

A significant accusation against WinZO is the alleged retention of ₹43 crore in gamers' funds that should have been refunded after the Union government banned real-money gaming, effective August 22, 2025. The agency also claims that WinZO engaged in 'criminal activities and unscrupulous practices' by having customers play against algorithms or software without their knowledge, rather than against human opponents. This practice allegedly led to illicit gains of ₹177 crore for the platform.

Furthermore, the probe revealed that WinZO was operating real-money games in foreign countries such as Brazil, the USA, and Germany from India, using the same platform as its domestic entity, even after the ban. Investigators also flagged the diversion of funds to overseas jurisdictions, including the US and Singapore, under the guise of foreign investments. Approximately $55 million (about ₹489.90 crore) was reportedly parked in a US bank account of what the ED described as a shell company.

Company's Response and Broader Context

In response to the allegations and searches, WinZO has issued statements asserting its compliance with 'all applicable laws' and its cooperation with the ongoing investigation. The company emphasized that 'fairness and transparency are core to how WinZO designs and operates its platform' and that its focus remains on 'protecting our users and ensuring a secure, trustworthy experience'.

These arrests underscore the intensified scrutiny on India's online gaming industry. The government has defended its ban on real-money gaming before the Supreme Court, citing concerns about financial fraud, money laundering, and potential terror financing.