ED seizes ₹520 crore from WinZO, Gameskraft over money laundering, KYC fraud

The Enforcement Directorate (ED) has frozen assets worth ₹520 crore belonging to real money gaming operators WinZO Games Pvt Ltd and Gameskraft, following search operations at four locations in Delhi and Gurgaon from November 18 to 22.

The action, under the Prevention of Money Laundering Act (PMLA), targets proceeds of crime held in bank balances, bonds, fixed deposits, and mutual funds.

WinZO, which operates an online real money gaming platform, is under investigation for alleged cheating, account manipulation, misuse of identity documents, and financial fraud. FIRs had earlier been filed against the company citing misuse of customers' KYC data and unauthorised blocking of accounts, leading to substantial user losses.

The ED's probe revealed that despite a government ban on real money games effective August 22, 2025, WinZO continued holding ₹43 crore without refunding it to customers. It also found that the platform used algorithms to simulate opponents in games without informing users they weren't playing against real people, thus allegedly generating illicit gains.

Moreover, the company is accused of limiting customer withdrawals and diverting funds to shell entities abroad. Specifically, around $55 million (₹489.90 crore) has reportedly been transferred to a US-based entity, WinZO US Inc., which the ED says operates under Indian control.

Meanwhile, eight bank accounts holding around Rs 18.75 crore tied to Gameskraft and Nirdesa Networks (Pocket52) have also been frozen.

The ED’s Bengaluru zonal office carried out search operations at four WinZO locations in Delhi and Gurgaon, along with multiple premises linked to Gameskraft and Nirdesa Networks (Pocket52) across Bengaluru and Gurugram.