WinZO operations crippled after ED arrests founders; users unable to access funds
All free to play games, digital gold services and their micro drama platform remains unaccessible. Company sources described the disruption as a “temporary outage.”
ADVERTISEMENT
The operations of popular real-money gaming platform WinZO have been severely disrupted after its founders, Saumya Singh Rathore and Paavan Nanda, were arrested by the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA).
The WinZO app and website have largely gone non-functional since December 2. Users attempting to log in were met with a message stating that the app is “under maintenance due to a technical issue,” even as multiple customers complained that they were unable to access their accounts despite having money deposited on the platform. Company sources described the disruption as a “temporary outage.”
All free to play games, digital gold services and their micro drama platform remains unaccessible.
The ED took the WinZO founders into custody following several hours of questioning at the agency’s Bengaluru zonal office. The arrests came amid widening investigations into alleged money laundering and fraudulent practices in the company’s gaming operations.
Earlier this week, ED officials conducted searches at four locations linked to WinZO in Delhi and Gurugram. The agency subsequently froze assets worth ₹505 crore, including bank deposits, bonds, fixed deposits and mutual funds, calling them proceeds of crime.
Investigators allege that WinZO falsely claimed its real-money games were free from bots or automated systems. However, evidence recovered during the raids reportedly showed the company used a concealed algorithm named PPP (past performance of player) to influence match outcomes.
According to ED officials, the firm failed to provide proof that PPP relied solely on user histories. Moreover, players were allegedly not informed that they might be matched against algorithm-driven opponents instead of real users. Those whose gameplay profiles were used to power PPP-based auto-matches were neither notified nor asked for consent.
Officials estimated that PPP-enabled games may have generated illicit gains of around ₹177 crore over the past 14 months, while causing corresponding losses to genuine players.
The agency has also accused WinZO of arbitrarily blocking user wallets without proper documentation or justification. In addition, the ED has flagged that the same app infrastructure was used for operations in Brazil and the United States, raising concerns over cross-border financial flows.
The ED has alleged that WinZO held ₹43 crore belonging to gamers even after the Union government banned real-money gaming from August 22, 2025, allowed players to unknowingly compete against algorithms instead of human opponents, operated real-money games in the US, Germany, and Brazil through the same India-based platform, limited or prevented customer withdrawals, and diverted funds overseas under the guise of investments.
A company spokesperson had rejected the allegations, saying: “Fairness and transparency are core to how WinZO designs and operates its platform. Our focus remains on protecting our users and ensuring a secure, trustworthy experience.”
The platform, which offers over 100 games in 15 Indian languages, has raised $100 million from global investors including Griffin Gaming Partners, Maker’s Fund, Courtside, and Kalaari Capital.
With the founders now in ED custody and the platform facing extensive scrutiny, WinZO’s services remain crippled. While company insiders continue to call it a temporary outage, users are demanding clarity over their funds and the future of the platform.
