ED Arrests WinZO Founders Over Money Laundering in Bengaluru
ED Arrests WinZO Founders Over Money Laundering in Bengaluru
The Enforcement Directorate arrested WinZO's founders in Bengaluru on money laundering charges linked to suspected real-money gaming funds and refunds owed to players.
In Bengaluru, the Enforcement Directorate arrested WinZO founders Saumya Singh Rathore and Paavan Nanda on money laundering charges, following questioning at the agency's zonal office. The arrests come as part of an ongoing probe into how real-money gaming funds were handled on the platform.
They were produced before a local court that night and were remanded to one-day custody, with officials saying the case will be reviewed for a detailed order.
Officials alleged that funds totaling around ₹43 crore belonging to gamers were held by WinZO and should have been refunded after India banned real-money gaming. The ED has previously raided WinZO and Gamezkraft and frozen bonds, fixed deposits and mutual funds worth ₹505 crore tied to WinZO Games under the Prevention of Money Laundering Act.
The agency has claimed that customers were made to play on algorithms rather than human dealers in real-money games, raising concerns about transparency and consumer protection.
Rathore, a co-founder of WinZO since 2017, has a background linked to other ventures, including earlier work in hospitality tech, while Paavan Nanda has been involved in multiple entrepreneurial projects. The case highlights the friction between online gaming platforms, regulatory policy, and investor risk in India's growing digital gaming sector.
Cover image source: ED arrests gaming platform WinZO's founder duo on money laundering charges 🔗
