The Enforcement Directorate arrested WinZO cofounders Saumya Singh Rathore and Paavan Nanda on November 27 in Bengaluru, marking one of the biggest takedowns in India’s real money gaming crackdown. A special PMLA court handed them 10-day custody after the agency presented evidence of alleged large-scale financial fraud and money laundering.
WinZO Founders’ ₹505 Crore Assets Frozen
The ED had already frozen assets worth ₹505 crore belonging to WinZO before making the arrests. WinZO stored these funds in bank accounts, corporate bonds, mutual funds, and fixed deposits. The agency claims this represents proceeds of crime generated through illegal operations that continued even after the government banned real money gaming on August 22, 2025.
What makes the allegations worse is that WinZO allegedly held ₹43 crore belonging to users without refunding them after the ban kicked in. The platform kept running real money games in Brazil, USA, and Germany from India-based servers while blocking Indian users from withdrawing their money.
Algorithms, Shell Companies, and KYC Fraud
ED investigations revealed WinZO used automated algorithms and bots disguised as real players to manipulate game outcomes. The system tricked users into thinking they were competing against humans from the start. Complaints poured in about blocked withdrawals, impersonation, and misuse of PAN and KYC data.
The money trail gets murkier overseas. ED found that WinZO diverted $55 million (~₹490 crore) to bank accounts in the USA held under WinZO US Inc.. The agency calls these account shell companies. All operations and bank account activities for this US entity were being controlled directly from India.
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This arrest comes days after ED raided WinZO and GamesKraft offices across Bengaluru, Delhi, and Gurugram. The gaming sector is already reeling. Flutter Entertainment’s Junglee Games laid off 350 employees this week. Moreover, multiple startups have shut down operations entirely following the real money gaming ban.
The investigation continues as ED examines WinZO’s global financial trails and overseas connections.