WinZO Promoters Used 'Deceptive' Algorithm To Cheat Gamers: ED
The court rejected their argument and gave their custody to the ED, saying the agency made out a "clear cut case" for their arrest.
The promoters of online real money gaming company WinZO "cheated" genuine players by using a "deceptive" algorithm leading to the generation of illicit funds of Rs 177 crore in about a year's time, the ED has alleged.
The federal probe agency on Wednesday arrested the co-founders duo of the company -- Saumya Singh Rathore and Paavan Nanda -- under the provisions of the Prevention of Money Laundering Act (PMLA) in Bengaluru.
A court sent them to ten days ED custody on Thursday.
The ED told the court that the accused, through their company WinZO Games Pvt Ltd, deployed a "concealed" and "deceptive" algorithm named "PPP" and indulged in "unethical" and "restrictive" business practices.
Probe found, it alleged, that the company and its directors indulged in cheating real-time human players by using the deceptive "PPP" algorithm and they have generated proceeds of crime, at least amounting to Rs 177 crore, for the period from May 2024 to August 2025.
It added that the directors "diverted" the proceeds of crime to their foreign subsidiaries and thus were guilty of the offence of money laundering. The agency said the funds diverted to the foreign entities were quantified at $55 million (Rs 489.90 crore).
The lawyers for the accused challenged their arrest before the court, saying they had "cooperated" with the ED during the raids conducted against Rathore and others, and the two promoters went to Bengaluru from Delhi on the receipt of the first summons issued to them.
The court rejected their argument and gave their custody to the ED, saying the agency made out a "clear cut case" for their arrest.
The money laundering case of the ED against WinZO and its promoters was filed on November 6, taking cognisance of a Gurugram police cyber crime FIR where a gamer had complained that he lost nearly Rs 42 lakh through their real money games like ludo and snakes etc.
"The funds worth $55 million (Rs 489.90 crore) have been parked in their (promoters) bank account in USA (bank accounts held in the name of 'WINZO US Inc'), which is a shell company, since all the operations and day-to-day business activities, operation of bank accounts is done from India," the agency said in a press statement on Friday.
