Bengaluru: The Enforcement Directorate (ED) has provisionally attached $55.69 million (approximately ₹505 crore) lying in overseas bank accounts linked to online gaming company WinZO. The funds were held in accounts of its US- and Singapore-based subsidiaries — WinZO US Inc and WinZO SG Pte. Ltd..
According to the agency, the accounts were effectively controlled by the company’s promoters, Pawan Nanda and Saumya Singh Rathore. The ED has alleged that a portion of the purported proceeds of crime was transferred abroad under the guise of foreign investment, while operational and banking control remained in India.
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Searches and Seizures
The agency conducted search operations on November 18, 2025, at the company’s offices and at the residence of one of its directors. This was followed by a raid on December 30, 2025, at the premises of the company’s accounting firm. During the searches, officials reportedly recovered documents and digital evidence forming the basis of the provisional attachment of the overseas funds.
Investigators claim that in several instances, users were allegedly matched against bots, artificial intelligence-driven profiles, or algorithm-based personas (PPP/EP/Persona) instead of genuine players in real-money games. The ED has alleged that this practice enabled the company to derive undue financial gains.
Allegations of Wallet Withdrawal Restrictions
The agency further alleged that restrictions or limits were imposed on in-app wallet withdrawals, compelling users to continue playing rather than cashing out their balances. According to investigators, substantial revenues were generated from matches played between bots and real players.
The ED has estimated that between the financial year 2022 and August 22, 2025, the company allegedly generated approximately ₹3,522.05 crore in unlawful gains. So far, movable assets worth around ₹689 crore have been frozen in the case. With the latest provisional attachment, the total value of attached or frozen assets now stands at nearly ₹1,194 crore, the agency said.
Complaint Filed Before PMLA Court
On January 23, 2026, the ED filed a prosecution complaint before the Special PMLA Court (CCH-1) in Bengaluru. The investigation was initiated on the basis of multiple FIRs alleging cheating, account blocking, impersonation, and misuse of PAN details.
Complainants have alleged that their KYC credentials were misused and that they suffered significant financial losses due to the alleged fraudulent practices.
Earlier Crackdown on Gaming Operators
Earlier, on November 18, searches were conducted at 11 locations linked to online gaming operators — including Gameskraft and WinZO — covering corporate offices as well as residences of senior executives.
The ED has stated that the investigation remains ongoing and that further attachments cannot be ruled out. The company’s official response to the latest action is awaited.
The move is being viewed as a sign of heightened regulatory scrutiny in the rapidly expanding online gaming sector. Legal experts note that if the allegations are substantiated in court, the case could set a significant precedent for India’s digital gaming industry.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
