WinZO Co-Founder Saumya Singh Rathore Arrested
Saumya Singh Rathore, co-founder of WinZO, a prominent social gaming app, has been arrested by the Enforcement Directorate (ED) in Bengaluru. This arrest comes in connection with a money laundering case that has raised significant concerns in the Indian gaming industry. WinZO, which started in 2018, allows players to earn money and prizes through various games.
The ED's investigation revealed that WinZO was holding ₹43 crore belonging to gamers, which was supposed to be refunded following a ban on real-money gaming in India. This situation has drawn attention to the practices of online gaming platforms in the country. The agency alleges that WinZO has engaged in unscrupulous activities, misleading customers by using algorithms that disguise the fact that players were competing against software, not other humans.
Prior to the arrest, the ED had conducted raids on WinZO and another gaming company, Gamezkraft, under the Prevention of Money Laundering Act (PMLA). The agency accused WinZO of operating real-money games (RMGs) in countries like Brazil, the US, and Germany, all while being based in India. This cross-border operation has raised questions about compliance with Indian laws.
WinZO's spokesperson has responded to the allegations by emphasizing the company's commitment to fairness and transparency in its operations. They reassured users that their focus remains on providing a secure and trustworthy gaming experience. However, the ED’s findings suggest a more complicated narrative involving financial mismanagement and potential international diversion of funds.
Saumya Singh Rathore's background adds an interesting layer to this case. A graduate in Applied Clinical Psychology from Bangalore University, she has built an impressive career, including roles at Times Network and KPMG in London. Her net worth was recently reported to be around ₹520 crore, making her one of the youngest wealthy women in India.
The ongoing investigation by the ED is likely to have significant implications for the online gaming industry in India. As regulations tighten, companies like WinZO may face increased scrutiny, impacting how they operate and engage with their users. The outcome of this case will not only affect the founders but could also reshape the landscape of online gaming in India.
