The Directorate of Enforcement (ED), Bengaluru Zonal Office, arrested Paavan Nanda and Saumya Singh Rathore, Directors of New Delhi-based WinZO Games Pvt. Ltd., on November 26. The arrests were made under the Prevention of Money Laundering Act (PMLA), 2002, in connection with alleged money laundering activities tied to the company's online real-money gaming operations.
Officials indicated that search operations at WinZO's corporate office and a director's residence preceded the arrests. The investigation originated from First Information Reports (FIRs) that alleged practices including cheating, account-blocking, impersonation, and misuse of PAN details by the company and others.
The ED's preliminary findings suggest that WinZO allegedly allowed customers to play real-money games against algorithms or software without disclosing this information to users. Furthermore, the ED alleges that WinZO continued to operate real-money games in foreign jurisdictions, including Brazil, the United States, and Germany, using the same India-based platform. The ED claims these operations continued despite a Union government ban on such activities.
Investigators stated that approximately USD 55 million (₹489.9 crore) was allegedly transferred to U.S. bank accounts under the name 'WINZO US Inc.', which the ED has described as a shell company.
Source: https://www.thehindu.com/news/national/karnataka/ed-arrests-gaming-platform-winzos-directors-in-505-crore-money-laundering-case/article70335855.ece