Proceeds of Crime at Zo Games Pvt Ltd: ED Takes Action

The focus keyword, Proceeds of Crime, has come into sharp relief as the Directorate of Enforcement has enacted a freeze on assets amounting to approximately Rs 192 crore, associated with Zo Games Pvt Ltd, a fully owned Indian subsidiary of WinZO Pvt Ltd. This action was taken following a search operation conducted under the Prevention of Money Laundering Act.

The frozen assets include bank balances, fixed deposits, and mutual funds, as per a statement released by the ED. The agency noted evidence indicating misleading gaming practices on the WinZO platform. Users played real money games against bots and algorithm-driven entities without appropriate disclosure. The investigation further uncovered instances where user fund withdrawals were either restricted or outright blocked.

To date, the ED has identified approximately Rs 802 crore as total Proceeds of Crime linked to this case. Previously, in November 2025, WinZO co-founders Paavan Nanda and Saumya Singh Rathore were arrested following search and seizure operations at both company locations and their residences. These developments occurred after assets collectively worth over Rs 505 crore were frozen under the PMLA.

The assets under scrutiny included bank balances, fixed deposits, mutual funds, and various financial instruments tied to the company and its associated entities. The ongoing investigation stems from various FIRs and numerous user complaints that allege gameplay manipulation, misuse of consumer data, non-refund of user funds, and continuation of real money gaming operations despite imposed regulatory restrictions.

Investigators revealed that user funds remained with the platform, even after the enforcement of restrictions on real money gaming. Additionally, the ED flagged transactions involving overseas fund movements, with part of the suspected Proceeds of Crime being diverted to the US and Singapore as international investments. A notable sum of $54 million was discovered in a US bank account held by WINZO US Inc.

This case involving WinZO is part of a larger enforcement initiative in 2025. Throughout the year, the ED has taken action against startup-origin companies, including Dream11, Gameskraft, Probo, Paytm, Myntra, Simpl, and OctaFX, related to money laundering, FEMA, and foreign-exchange investigations.