Breaking: ED files chargesheet against Winzo, alleges Rs 3,522 crore bot-driven real-money gaming fraud

The Enforcement Directorate (ED) has filed a prosecution complaint—equivalent to a chargesheet—against online real-money gaming platform Winzo Pvt. Ltd., accusing the company of orchestrating a large-scale, bot-driven manipulation of games that allegedly resulted in proceeds of crime amounting to Rs 3,522.05 crore between FY22 and FY26.

The prosecution complaint was filed on January 23, 2026, before the Special Court under the Prevention of Money Laundering Act (PMLA) in Bengaluru. Winzo has been named as the principal accused, along with its directors Paavan Nanda and Saumya Singh Rathore, and its wholly owned subsidiaries in India and overseas—Winzo US Inc (USA), Winzo SG Pte Ltd (Singapore) and ZO Pvt Ltd.

Allegations of bot-led manipulation

According to the ED, investigations revealed that Winzo’s real-money games (RMGs) were systematically manipulated through the deployment of automated bot profiles and algorithm-driven simulated players, despite the company publicly assuring users that its platform was free from bots and fully transparent.

The agency alleged that until December 2023, the company embedded bots directly into game codebases. Between May 2024 and August 2025, Winzo allegedly modified its modus operandi by simulating historical gameplay data of dormant or inactive users and pitting them against real players—without their knowledge or consent.

To conceal these practices, the ED said the company internally referred to bot-driven gameplay using misleading terminologies such as “Engagement Play (EP)”, “Past Performance of Player (PPP)” and “Persona”.

The investigation claims that users were initially lured with small bonuses and allowed to win against easy bots, with withdrawals permitted to create a false sense of trust. However, once users began playing with higher stakes, hard or winning bots were systematically deployed, leading to significant financial losses.

The ED stated that genuine users lost approximately Rs 734 crore by playing against bot profiles across EP and PPP formats. In several cases, even legitimate winnings were allegedly blocked through restrictive withdrawal mechanisms, forcing users to continue gameplay.

The chargesheet further alleged that Winzo failed to return legitimate user winnings and deposits worth Rs 47.66 crore, even after the Union government imposed a ban on real-money gaming platforms.

The ED claimed the manipulative gaming structure caused severe financial distress, particularly among users from economically weaker backgrounds. The prosecution complaint noted reports of extreme mental distress and suicidal tendencies among certain users.

The ED has alleged that the proceeds of crime were laundered through a network of shell companies incorporated in the US and Singapore. Around $55 million was allegedly transferred to foreign bank accounts held by these shell entities under the guise of overseas direct investment (ODI).

Additionally, Rs 230 crore was allegedly diverted to another accused subsidiary under the pretext of “loans from holding company”, without any legitimate business rationale. The agency also claimed that attempts were made to divert an additional Rs 150 crore via the ODI route, but these failed due to non-submission of mandatory audit and utilisation certificates.

Searches, seizures and asset freeze

The ED initiated its probe based on multiple FIRs registered by the Bengaluru CEN Police Station and law enforcement agencies in Rajasthan, Delhi and Gurugram for cheating offences under the Indian Penal Code.

Search and seizure operations were conducted on November 18, 2025, and December 30, 2025, at Winzo’s offices, the residences of its directors and the premises of its accounting firm. These searches resulted in the seizure of incriminating documents and electronic records, and the freezing of movable assets worth Rs 690 crore, including bank balances, payment gateway funds, mutual funds, bonds, fixed deposits and cryptocurrency wallets.

In its prosecution complaint, the ED stated that the accused knowingly generated, possessed, used and concealed proceeds of crime and attempted to project them as untainted property. Offences under Section 3 of the PMLA, read with Section 70, have been established, punishable under Section 4 of the Act, the agency said.

Winzo operates a mobile-based real-money gaming platform offering over 100 games, with a claimed user base of around 25 crore, largely from Tier-3 and Tier-4 cities. The company earns revenue by charging a commission on users’ betting amounts.

The ED, however, maintained that the platform’s revenue was substantially driven by fraudulent gameplay mechanisms, rather than legitimate user participation.

Further investigation in the case is ongoing.