WinZO Founders Arrested on Money Laundering Charges

The Enforcement Directorate has arrested the two co-founders of the online gaming platform WinZO due to allegations of money laundering, marking an increase in challenges for the Delhi-based enterprise. Reports indicate that Saumya Singh Rathore and Paavan Nanda, the co-founders, were apprehended in Bengaluru following a session of questioning by the agency. They were subsequently presented in front of a local court, which approved a one-day custody for further investigation.

Allegations Against WinZO

These arrests came after multiple first information reports were filed, accusing the platform of deceiving users, halting withdrawal requests, manipulating game results, employing fake identities, and misusing know your customer information. Moreover, allegations include the implementation of automated systems simulating players, thereby misleading authentic users.

ED’s Financial Actions

The Enforcement Directorate has not yet issued an official comment regarding the arrest of the founders. On November 24, the agency took significant financial measures, freezing Rs 523 crore in assets associated with WinZO and another real money gaming company, Gameskraft. Of that total, approximately Rs 505 crore was related to WinZO, encompassing bank balances, mutual funds, corporate bonds, and fixed deposits. The remaining funds were linked to entities within the Gameskraft group, including Nirdesa Networks, which runs Pocket 52.

Continued Operations Amid Prohibition

Investigators have asserted that the platforms persisted in offering real money games to customers in regions such as the United States, Brazil, and Germany, even after a nationwide ban was instituted on August 22. The agency has also claimed that player funds exceeding Rs 43 crore were withheld without reimbursement.

WinZO’s Compliance Statement

In a prior official statement, WinZO asserted that it operates in full compliance with the law and emphasised that its systems and processes are rigorously designed to guarantee fairness and transparency.

Startup Superb has reached out to WinZO seeking additional information.