ED raids Winzo, Gamezkraft over alleged rigged algorithms, crypto links

The Enforcement Directorate (ED) on Tuesday conducted raids on two online gaming firms — Winzo and Gamezkraft (Pocket52.com) — in connection with allegations of using rigged algorithms to disadvantage players.

The agency searched 11 locations across Bengaluru (five), Delhi (four) and Gurugram (two), including the corporate offices and residences of the CEO, COO and CFO of both firms. The searches were initiated following complaints that the companies were operating “manipulated algorithms” to skew outcomes against gamers.

According to the ED, its probe has also revealed that the promoters held cryptocurrency wallets. “It is alleged in the FIRs filed by victims that these gaming companies manipulated the algorithm of the app, putting gamers at a disadvantage. During the search, it was unearthed that promoters are owning crypto wallets, indicating possible laundering through cryptocurrencies,” the agency said in a statement.

The raids come weeks after the central government imposed a blanket ban on online money-based games under the Promotion and Regulation of Online Gaming Act, which came into effect on October 1.

Gamezkraft, which operates the online rummy platform RummyCulture, is already under scrutiny for its involvement in a fraud case linked to former CFO Ramesh Prabhu, who allegedly siphoned off Rs 270.43 crore.