Enforcement Directorate has arrested WinZO founders Saumya Singh Rathore and Paavan Nanda, freezing Rs 500 crore in assets. The agency alleges the company siphoned funds to the US, operating online money gaming despite a ban. Investigations reveal players were allegedly deceived by algorithms, leading to significant financial losses laundered abroad. NEW DELHI: In another major action against online gaming and betting companies, ED arrested WinZO founders Saumya Singh Rathore and Paavan Nanda late on Wednesday and produced them before a special court in Bengaluru, which remanded them to 10 days of ED custody. The agency has already frozen Rs 500 crore of assets of the company, including bonds, mutual funds and fixed deposits.According to ED sources, WinZO, which was operating from India despite a ban on all online money gaming and gambling activities, was siphoning off the proceeds of crime to the US and was in the process of shifting base to that country where online gaming is not banned. It was into online money gaming in Brazil, Germany and the US, besides India. “The directors of the company have systematically diluted their share in the Indian company, and these funds have been transferred to the US-based subsidiary. The total available balance in the foreign accounts of the company is around $55 mn (Rs 490 crore),” agency sources said. During the hearing on the remand application on Thursday, the ED counsel told the court that “using algorithms, the accused persons had deceived and defeated the players in different online games. Unaware that they were playing with an algorithm and that defeat was certain, the players were losing money”. “Prima facie, it was found during the investigation that Rs 177 crore of proceeds of crime was generated between May 2024 and August this year,” the agency said. These illicit gains were then laundered to the US and Singapore through the subsidiaries of WinZo Games, US. According to ED, four FIRs were registered against the accused persons in Delhi, Bengaluru, Rajasthan and Gurgaon, and the agency later searched premises of the accused, including the offices of WinZo Games in Delhi and residence of Saumya Singh, between Nov 18 and Nov 22. The agency has also found a balance of Rs 43 crore in WinZo’s escrow account, which remains classified as “payable to users” as of date. “The existence of such a significant pending payable amount is evidence that user wallets were blocked indiscriminately and arbitrarily, preventing legitimate users from accessing or withdrawing their own funds,” sources said. End of ArticleFollow Us On Social MediaVideosIndia Is a Key Ally, Cyprus Assures Strong Push to Finalise India–EU FTA TalksImran Khan Health Rumour: PTI Holds Sit In Outside Adiala Jail, KP CM Sohail Afridi Stages ProtestRam Madhav Challenges ‘No-Religion’ Narrative in White Collar Terror DebateAustralia Says India Is Now A Leading Global Power, Credits PM Modi For Transforming World DynamicsOusted PM Sheikh Hasina Faces Fresh Conviction as Court Awards 21-Year TermPM Modi Announces Major Move Allowing Private Players Into Nuclear Sector To Spur Advanced ReactorsExplained: Why Vikram-I Could Transform India’s Satellite Launch Market And Global Space Leadership‘Pak, Bangladesh, US…’: BJP Alleges Congress Using Foreign ‘X’ Accounts to Set India’s NarrativePakistan’s Adiala Jail Issues Statement On Imran Khan’s Health Amid Viral Death RumoursThe Indrajaal Ranger: India Unveils AI-Enabled Anti-Drone Patrol Vehicle In Hyderabad123PhotostoriesBollywood gems reviving forgotten tales with fresh heart and magic for a new generation of cinema lovers everywhereFun facts about the ‘Stranger Things’ castFrom ‘Apne’ to ‘Rocky Aur Rani Kii Prem Kahaani’: Dharmendra movies you can watch on OTT platforms‘Stranger Things 5’: Meet the new cast and find out who survives the final battle‘Stranger Things’ cast: Then and now‘Stranger Things’ cast: Educational qualificationsTaarak Mehta Ka Ooltah Chashmah: From Dilip Joshi being older than Amit Bhatt to Mandar Chandwadkar leaving his Dubai job for acting; Lesser-known facts about the castGastroenterologist doctor reveals the power of eating 3 eggs everyday5 must-visit national parks in the USA that are also UNESCO World Heritage Sites5 things to do during Brahma Muhurta for 21 days to transform your life123Hot PicksDelhi AQI TodayNew Labour CodeWorld NewsGold rate todaySilver rate todayPublic Holidays NovemberBank Holidays NovemberTop TrendingToronto Maple LeafsAyesha CurryFuzzy ZoellerCristiano RonaldoStefon DiggsGabrielle UnionVanessa BryantReed Sheppard GirlfriendStephen CurryCandace Owens
NEW DELHI: In another major action against online gaming and betting companies, ED arrested WinZO founders Saumya Singh Rathore and Paavan Nanda late on Wednesday and produced them before a special court in Bengaluru, which remanded them to 10 days of ED custody. The agency has already frozen Rs 500 crore of assets of the company, including bonds, mutual funds and fixed deposits.According to ED sources, WinZO, which was operating from India despite a ban on all online money gaming and gambling activities, was siphoning off the proceeds of crime to the US and was in the process of shifting base to that country where online gaming is not banned. It was into online money gaming in Brazil, Germany and the US, besides India. “The directors of the company have systematically diluted their share in the Indian company, and these funds have been transferred to the US-based subsidiary. The total available balance in the foreign accounts of the company is around $55 mn (Rs 490 crore),” agency sources said. During the hearing on the remand application on Thursday, the ED counsel told the court that “using algorithms, the accused persons had deceived and defeated the players in different online games. Unaware that they were playing with an algorithm and that defeat was certain, the players were losing money”. “Prima facie, it was found during the investigation that Rs 177 crore of proceeds of crime was generated between May 2024 and August this year,” the agency said. These illicit gains were then laundered to the US and Singapore through the subsidiaries of WinZo Games, US. According to ED, four FIRs were registered against the accused persons in Delhi, Bengaluru, Rajasthan and Gurgaon, and the agency later searched premises of the accused, including the offices of WinZo Games in Delhi and residence of Saumya Singh, between Nov 18 and Nov 22. The agency has also found a balance of Rs 43 crore in WinZo’s escrow account, which remains classified as “payable to users” as of date. “The existence of such a significant pending payable amount is evidence that user wallets were blocked indiscriminately and arbitrarily, preventing legitimate users from accessing or withdrawing their own funds,” sources said.
