WinZO founders sent to 14-Day judicial custody in ED money laundering probe

In a significant development in the ongoing money laundering probe against WinZO, a Bengaluru sessions court on Saturday remanded the gaming platform’s co-founders — Saumya Singh Rathod and Paavan Nanda — to 14 days of judicial custody. The order was passed shortly after their Enforcement Directorate (ED) custody ended, marking a crucial turn in what investigators describe as a large-scale digital fraud and algorithm-manipulation case.

The two founders were produced before 23rd City Civil and Sessions Judge Gopal Krishna Rai, following the completion of their 14-day ED custody linked to allegations of cheating users by manipulating the WinZO gaming algorithm and siphoning off funds. According to sources, ED counsel Madhu N. Rao did not seek further custodial interrogation, leading the court to place both individuals in judicial custody until the next hearing.

Defence counsel Rohan Kothari, representing Saumya and Paavan, filed an application seeking interim bail, which the court will hear on Monday. The legal team is expected to argue that the arrests were unwarranted and that the founders have cooperated with every stage of the investigation.

The money laundering case stems from separate FIRs filed across Bengaluru (West Sen police station), Rajasthan, Delhi, and Gurugram, accusing WinZO of defrauding users through manipulated game outcomes. These complaints allege that users were consistently misled into believing they had a fair chance of winning, when outcomes were allegedly influenced by the company’s backend systems.

Based on these FIRs, the ED registered an ECIR on November 6, 2025, triggering a widespread probe. Between November 18 and 22, ED teams conducted extensive searches at two WinZO offices in Delhi, at Saumya Singh Rathod’s residence, and at the home of her employee Dheeraj. Summons were issued on November 22, and both co-founders were arrested on November 26 when they appeared for questioning.

The agency claims that the founders operated “a network that enticed innocent people to play games through the WinZO app and cheated them using the system.”

Investigators say that between May 2024 and August 2025, the platform generated ₹177 crore in proceeds of crime, with approximately ₹400 crore transferred to WinZO partner entities in Singapore and the U.S. The ED has so far seized assets worth ₹500 crore, calling it evidence of a “large and sophisticated network” aimed at exploiting digital gamers.

Amid the intensifying investigation, WinZO has launched a counterattack. The Delhi-based gaming firm has filed a writ petition before the Karnataka High Court, challenging the legality of the ED’s multi-day search and seizure operation at its Malviya Nagar office.

In its petition, WinZO contends that the ED’s actions from November 18 to 22 were “illegal, void, and without proper justification.” The company argues that the search lacked the mandatory “reasons to believe” required under Section 17 of the Prevention of Money Laundering Act (PMLA). It has asked the court to:

Declare the ED search unlawful

Quash the panchanama prepared on November 22

Set aside all consequential actions

Lift the ED’s November 21 orders freezing WinZO’s bank accounts, escrow accounts, and other financial instruments

The company claims the ED’s actions have brought its operations to a standstill and violated procedural safeguards.