ED Raids WinZO, GamezKraft Offices in Bengaluru, Delhi in Algorithm-Manipulation Probe

The Enforcement Directorate carried out raids at offices and residences linked to two online gaming operators in Winzo and Gamezkraft, which is the parent company of Pocket52. It is a part of a larger probe into suspected cheating and money laundering through cryptocurrency that was allegedly carried out by these gaming companies.

Officials, as cited by PTI, said the ED is carrying out searches in 11 locations across three cities - five in Bengaluru, four in Delhi and two in Gurgaon.

ED raids are underway in the corporate offices of both the gaming companies as well as the residences of their leadership, including CEOs, COOs and CFOs.

The ED raids come on the back of multiple FIRs and complaints by users alleging that these companies had manipulated their gaming algorithms for their own game, putting gamers at financial risk in the process.

As per the investigators, the complaints claimed that outcomes on the platforms were not random or transparent, and instead tilted in favour of the operators.

“During the search, it is unearthed that promoters are owning crypto wallets, indicating laundering through cryptocurrencies,” officials said.

Officials added that these findings have broaded the horizon of the financial probe, with the agency now examining the flow of funds and the potential diversion of player deposits. They are also probing whether these cryptocurrency channels were used to route illicit gains.

WinZO and GamezKraft operate some of India’s largest real-money gaming applications, hosting skill-based games, poker, rummy and other online formats that involve financial stakes.

The sector has faced increased scrutiny in recent years due to consumer complaints and regulatory ambiguity surrounding prize-based gaming.

These are not the only companies online gaming companies who have been on ED's radar in recent years, with the agency also cracking down on advertisements and endorsements.