The Enforcement Directorate (ED) has made a significant breakthrough in its investigation into gaming platform WinZo, revealing that the company parked a staggering $54 million (approximately Rs 485 crore) in a shell company located in the United States. This disclosure came alongside the agency's action of freezing Proceeds of Crime (PoC) worth Rs 192 crore linked to the firm's operations.
Raids and Asset Freeze
On Tuesday, January 1, 2026, ED officials conducted a raid at the Bengaluru office of M/s ZO Games Pvt Ltd, a fully-owned Indian subsidiary of M/s WinZo Pvt Ltd. Following the search, the agency moved to freeze the identified PoC, which were held in the form of bank balances, fixed deposit receipts, and mutual funds. The ED stated that the subsidiary was still in possession of users' money amounting to Rs 43 crore, despite a government ban on Real Money Games.
Scale of the Alleged Fraud and BOT Manipulation
The investigation has so far revealed that WinZo Pvt Ltd generated proceeds of crime totalling around Rs 802 crore. A portion of these funds was allegedly moved out of India to the USA and Singapore under the guise of overseas investments. A central allegation from the ED is that WinZo engaged in deceptive practices by making customers play against BOTs, AI, and algorithms while presenting the games as matches against real human opponents.
Through this method, the company is accused of securing illicit winnings of about Rs 177 crore from May 2024 to August 2025, and an additional Rs 557 crore from April 2022 to December 2023. The agency also claims WinZo imposed restrictions, preventing and limiting customers from withdrawing funds held in their wallets on the platform.
Investigation Origins and Arrests
The probe was initiated based on a First Information Report (FIR) filed by the Karnataka Police, which alleged a large-scale fraud involving manipulated game outcomes, player collusion, technical glitches, and withdrawal limits. One victim reportedly lost over Rs 3 crore due to systemic cheating. In a major development preceding these latest actions, the ED had conducted searches at WinZo's offices and the residences of its directors on November 18. Subsequently, WinZo founders Saumya Singh Rathore and Paavan Nanda were arrested in November on charges of money laundering.
The ED's statement concluded that the searches provided evidence of the company's involvement in criminal activities and unscrupulous practices, leading to the ongoing legal actions and asset freeze.
