The Enforcement Directorate (ED) has provisionally attached ₹505 crore ($55.7 million) held in foreign bank accounts in the US and Singapore as part of an ongoing money laundering investigation into gaming startup WinZO.
The ED alleges that the funds, held in accounts operated through overseas shell entities, Winzo US Inc and Winzo SG Pte Ltd, were controlled from India by WinZO’s cofounders Paavan Nanda and Saumya Singh Rathore. The investigation was initiated based on multiple FIRs that accused the platform of cheating, impersonation, misuse of PAN and KYC data, and wrongful blocking of user accounts.
Investigators claim that WinZO used bots and algorithm-driven personas to compete against real users in paid games without informing customers. The ED also accuses the company of manipulating games and inducing players to continue gaming by restricting or delaying withdrawals from user wallets.
Earlier actions by the ED include search and seizure operations at WinZO’s office premises and its director’s residence, as well as raids at its accounting firm. A previous prosecution complaint alleged significant manipulation of games and money laundering practices by WinZO, resulting in substantial losses for genuine users.
Source: Inc42 Media