ED files prosecution complaint against Winzo and its directors

The Directorate of Enforcement (ED) on Sunday said that it has filed a prosecution complaint against online real money gaming platform Winzo Pvt. Ltd., its directors, and associated subsidiaries under the Prevention of Money Laundering Act (PMLA), 2002.

The complaint was filed on January 23, before the Special Court for PMLA cases (CCH-1), Bengaluru. Winzo Pvt. Ltd. has been named as the prime accused along with its directors, Paavan Nanda and Saumya Singh Rathore. The ED has also arraigned the subsidiaries owned by the company, including Winzo US Inc. (USA), Winzo SG Pte. Ltd. (Singapore), and ZO Pvt. Ltd.

The investigation was initiated based on multiple FIRs registered by the Bengaluru CEN Police and police authorities in Rajasthan, New Delhi, and Gurugram, alleging offences of cheating under the Indian Penal Code.

In a statement, the ED said that it conducted search and seizure operations on November 18, 2025, and December 30, 2025, on the Winzo’s office premises, the residences of its directors, and the office of its accounting firm. These searches reportedly led to the seizure of incriminating documents and electronic records and the freezing of movable assets, including bank balances, payment gateway funds, mutual funds, bonds, fixed deposits, and cryptocurrency wallets, valued at approximately ₹690 crore.

According to the ED, Winzo operated a real money gaming (RMG) platform offering over 100 games and claimed a user base of around 25 crore, largely from tier-3 and tier-4 cities. While the company charged users a commission on betting amounts and assured a bot-free and transparent gaming environment, the investigation revealed widespread manipulation.

The ED stated that until December 2023, the games were embedded with bots driven by AI and algorithms. Between May 2024 and August 2025, the company allegedly switched to simulating dormant or inactive players’ historical gameplay data against real users without their knowledge or consent. The company concealed the unscrupulous practices under misleading terms such as ‘Engagement Play’, ‘Past Performance of Player’, and ‘Persona’, according to the ED.

It said that investigators found that users were initially lured with bonuses and easy wins to build trust, after which harder bots were deployed at higher stakes, leading to substantial losses. The ED estimated that users suffered losses of around ₹734 crore due to such practices, while legitimate winnings worth ₹47.66 crore were allegedly withheld.

The evidence found also revealed that this manipulative gaming structure of Winzo caused severe financial distress to users, especially those from poor financial backgrounds, and some users reportedly experienced extreme mental distress and also self-harm tendencies, according to the ED.

The agency has alleged that Winzo generated proceeds of crime amounting to ₹3,522.05 crore between FY 2021-22 and FY 2025-26 (up to August 22, 2025). These funds were allegedly laundered through shell companies in the U.S. and Singapore, with about USD 55 million transferred under the guise of overseas direct investment.

The ED claimed that in the prosecution complaint, it has clearly established that the accused persons have knowingly generated, acquired, possessed, used and concealed the proceeds of crime and attempted to project the same as untainted property.