The ED has arrested WinZO founders Saumya Singh Rathore and Paavan Nanda on money-laundering allegations following raids and investigations under the PMLA.
The case involves withheld user funds (~₹43 crore), frozen assets worth over ₹500 crore, and alleged diversion of funds to foreign shell entities despite a ban on real-money gaming in India.
Authorities claim WinZO used software algorithms to simulate opponents and misled users, generating illicit gains; the company says it remains transparent and compliant.
The Enforcement Directorate (ED) on Wednesday arrested two founders of WinZO — Saumya Singh Rathore and Paavan Nanda — after questioning them at the agency’s zonal office in Bengaluru. They were produced before a local court the same night and remanded in ED custody for a day; further court proceedings are expected soon.
The arrests follow a week of raids on premises of WinZO and another gaming firm under suspicion of financial fraud and misuse of user funds. The ED alleges that after the national ban on real-money gaming (RMG) came into effect on August 22, 2025, WinZO continued operations and failed to refund approximately ₹43 crore that belonged to gamers.
According to the ED, WinZO falsely presented algorithm-driven games as contests against real players — a fact not disclosed to users. The agency claims these practices generated illicit gains from bets placed and lost by customers. Further, it has frozen assets worth around ₹505 to ₹520 crore linked to WinZO — including bank balances, bonds, fixed deposits and mutual funds — under the Prevention of Money Laundering Act (PMLA).
In addition, the ED alleges that funds were diverted from India to entities abroad: roughly USD 55 million (about ₹490 crore) have been traced to a US-based shell firm reportedly controlled by WinZO, and some funds may have been routed to Singapore, all under the guise of overseas investment.
A company spokesperson responded saying WinZO values “fairness and transparency,” claiming the platform officially complies with all applicable laws and is cooperating with authorities.
