The Enforcement Directorate (ED) has arrested Saumya Singh Rathore and Paavan Nanda, founders of online gaming platform WinZO, on charges of money laundering. The arrests took place in Bengaluru after questioning at the ED zonal office. A local court granted them one-day custody, and they are expected to be produced again for further orders.

The ED alleged that WinZO held ₹43 crore of gamers’ funds that should have been refunded after India banned real-money gaming (RMG). The agency accused the company of using algorithms in RMGs without informing players and operating games internationally (US, Brazil, Germany) from India.

Under the Prevention of Money Laundering Act, assets worth ₹505 crore including bonds, FDs, and mutual funds were frozen. The ED claimed Indian funds were diverted abroad, including USD 55 million in a US shell company.

WinZO responded, stating its platform is designed with “fairness and transparency” and is compliant with all laws.