ED freezes over Rs 520 Cr assets linked to WinZO and Gameskraft in RMG probe

The Enforcement Directorate (ED) on November 24 said that it has carried out search operations across Delhi, Gurugram, and Bengaluru between November 18 and November 22 under the Prevention of Money Laundering Act (PMLA), targeting two separate online real-money gaming cases: WinZO Games Pvt Ltd and Pocket52 operator Nirdesa Networks along with Gameskraft Technologies.

In the WinZO case, the ED said it has frozen proceeds of crime worth Rs 505 crore held in bank balances, deposits, mutual funds, and bonds under PMLA Section 17(1A). The agency began its probe based on FIRs alleging cheating, blocking of accounts, KYC misuse, impersonation, and unauthorised withdrawals. Users reported losses due to alleged fraud and manipulation during gameplay.

The ED said WinZO continued offering real-money games from India to foreign users in the US, Brazil, and Germany even after India’s national ban on RMGs from August 22, 2025. The agency also said Rs 43 crore remains unrefunded to users. Investigators alleged that algorithm-driven play misled customers into believing they were competing with real users. The ED further claimed that funds from the Indian entity were diverted to the US and Singapore and noted $55 million (Rs 489.9 crore) parked in a US bank account.

“We have been cooperating fully with the investigating agency and will continue to support the process. 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. WinZO remains fully compliant with all applicable laws," said a Winzo spokesperson.

In the Pocket52–Gameskraft case, the ED searched multiple premises in Bengaluru and Gurugram. The probe originated from FIRs alleging manipulation of game outcomes, player collusion, technical glitches, and withheld withdrawals. Users reported losses of over Rs 3 crore. Eight bank accounts with Rs 18.57 crore have been frozen.

In September, the Bengaluru-based Gameskraft grappled with a major financial scandal after its former CFO, Ramesh Prabhu, allegedly diverted Rs 250 crore of company funds to personally trade in the futures and options (F&O) segment. 

The incident comes at a challenging time for Gameskraft, which has already been hit by regulatory changes following the government’s Promotion and Regulation of Online Gaming Act, 2025, which banned real-money online gaming. Platforms under the company, including RummyCulture, Gamezy, Pocket52, and Ludo Select, were forced tosuspend operations, compounding the financial impact.