WinZO Founders Arrested in Money Laundering Case
The Enforcement Directorate (ED) has recently arrested the founders of WinZO, Saumya Singh Rathore and Paavan Nanda, on serious charges of money laundering. This arrest took place in Bengaluru after the two were questioned regarding the management of ₹43 crore belonging to gamers. Allegations suggest that these funds were not refunded following India's ban on real-money gaming, which raises significant concerns about the integrity of online gaming platforms in the country.
According to ED officials, the investigation revealed that WinZO was allegedly involved in misleading practices, where customers played games manipulated by algorithms, unaware that they were not competing against real human players. This deception, combined with the company's failure to refund substantial amounts to its users, has led to serious legal scrutiny.
The ED has further alleged that WinZO was operating real-money games (RMGs) in various countries, including Brazil, the US, and Germany, using the same platform based in India. Despite the ban on RMGs effective from August 22, 2025, the company reportedly held onto ₹43 crore without returning it to the gamers.
In a related action, the ED froze assets worth ₹505 crore, including bonds, fixed deposits, and mutual funds associated with WinZO Games. These actions highlight the agency's commitment to addressing financial irregularities in the online gaming sector, which has witnessed rapid growth in India.
In response to the allegations, a spokesperson for WinZO emphasized the company's dedication to fairness and transparency. They stated that WinZO's focus remains on user protection and compliance with applicable laws. However, the ongoing investigation raises important questions about the accountability of online gaming platforms in India.
This situation serves as a crucial reminder for players and investors alike about the importance of transparency in the online gaming industry. As the ED continues its investigation, the future of WinZO and similar platforms may face significant challenges, impacting the broader landscape of online gaming in India.
