ED arrests WinZO Games founders, alleges hidden algorithm and illicit gains

The Enforcement Directorate (ED) on Wednesday arrested Saumya Singh Rathore and Paavan Nanda, founders of WinZO Games Pvt Ltd, under sections of the Prevention of Money Laundering Act (PMLA). In a late night development, the pair had been summoned for questioning at the agency’s Bengaluru zonal office, and after several hours of interrogation, were taken into ED custody.

Searches were conducted earlier this week at four locations linked to the gaming company in Delhi and Gurugram. After this, the ED froze assets worth about ₹505 crore—held in bank accounts, bonds, fixed deposits and mutual funds—which the agency described as proceeds of crime.

The ED’s investigation into WinZO has alleged that the company publicly insisted its real-money games (RMGs) were free of bots, automated devices or algorithms. However, officials reportedly said evidence found during the searches indicated the firm had been deploying a concealed algorithm called PPP, or past performance of player.

The official stated that although the company claimed the PPP inputs were drawn from user histories, no evidence was provided to support this assertion, and players were not informed that their opponents were algorithm-driven rather than human. He added that users whose gameplay profiles were utilised for PPP-based automated matches had neither been notified nor given consent for such use.

As per a report by ET, PPP-enabled games are believed to have generated illicit gains of roughly ₹177 crore for the company over the past 14 months, while causing corresponding losses to genuine participants.

The ED has also alleged that WinZO engaged in restrictive and unethical business practices. The company has additionally been accused of blocking user wallets arbitrarily and without documented justification.