ED Files Chargesheet Against Winzo for ₹3,500 Crore Money Laundering and Game Manipulation

Bengaluru: The Enforcement Directorate (ED) has taken significant action against Winzo Private Limited and its directors, Pawan Nanda and Soumya Singh Rathore, along with all its subsidiaries. A chargesheet has been filed in the Special PMLA Court under the Prevention of Money Laundering Act, based on multiple First Information Reports (FIRs) related to fraud cases registered in Bengaluru, Rajasthan, New Delhi, and Gurugram.

Earlier, on November 18, 2025, and December 30, 2025, the ED conducted raids at Winzo’s offices, the residences of the directors, and their accounting firm’s premises. Important documents and electronic records were seized during these searches. Approximately ₹690 crore worth of bank balances, mutual funds, fixed deposits, and crypto wallets were frozen as part of the probe.

Investigation Reveals Manipulation of Real Money Games

Winzo operates a mobile app offering more than 100 real money games with around 25 crore users. The company claimed to charge a commission on users’ betting amounts and assured a secure and transparent platform. However, the investigation uncovered that most games were manipulated.

Up to December 2023, bots and artificial intelligence were used in these games. Between May 2024 and August 2025, the company altered bot operations to use inactive players’ data against real players without their knowledge or consent. To conceal this, bots were disguised under misleading names.

Users were initially given small bonuses to build trust and create a winning experience. But as stakes increased, ‘hard bots’ were deployed to cause heavy losses, resulting in a total user loss of ₹734 crore. Withdrawals were blocked when users won big amounts.

Huge Illegal Earnings and International Money Transfers

Despite a ban on real money games (RMG), ₹47.66 crore was not returned to users. Overall, between 2021-22 and 2025-26, Winzo illegally earned around ₹3,522.05 crore, causing severe financial and mental distress, especially among users from economically weaker backgrounds.

The probe also revealed that the company routed illegal earnings abroad through shell companies in the USA and Singapore. Approximately USD 55 million was sent to foreign bank accounts, while ₹230 crore was diverted to another subsidiary as ‘loans from holding company.’ An attempt to transfer ₹150 crore overseas failed due to lack of audit and documentation.

ED’s Legal Action and Charges

The ED has stated in its prosecution petition that the accused deliberately engaged in acquiring, holding, and concealing proceeds of crime. The case has been registered under sections 3, 4, and 70 of the PMLA for money laundering.

This case highlights the growing scrutiny on digital gaming platforms and their financial irregularities, emphasizing the need for stringent regulatory oversight.