In a major crackdown on online gaming fraud, the Enforcement Directorate’s Bengaluru Zonal Office has provisionally attached bank accounts worth approximately 505 crore rupees held in the USA and Singapore. These accounts belong to shell companies linked to the real-money gaming platform Winzo Private Limited, controlled by promoters Pawan Nanda and Soumya Singh Rathore.
The action stems from a money laundering investigation into Winzo’s deceptive practices. Users were tricked into playing against bots, AI algorithms, and software disguised as real opponents—internally termed PPP/EP/Persona. The platform never disclosed this manipulation, luring players into repeated games while restricting withdrawals from their wallets.
ED raids on November 18, 2025, targeted Winzo’s offices and directors’ residences, followed by searches at their accounting firm on December 30, 2025. Evidence revealed the company generated crime proceeds through ‘rake commissions’ from bot-manipulated matches. From FY 2021-22 to August 22, 2025, Winzo raked in 3,522.05 crore rupees from these illicit activities.
To date, ED has frozen movable properties worth 689 crore rupees, with laundered funds routed overseas via fake investments. All operations, including banking, were managed from India. The total attached amount now stands at nearly 1,194 crore rupees.
A prosecution complaint was filed on January 23, 2026, before the Special Court (CCA-1) in Bengaluru under PMLA. The agency alleges Winzo defrauded users and laundered funds through shell entities. Investigations continue to uncover additional accomplices and fund trails.
This case spotlights vulnerabilities in India’s booming real-money gaming sector, home to millions of users on platforms like Winzo. ED’s aggressive stance could herald stricter regulations, prioritizing transparency and player protection amid rising digital gambling concerns.