In a major crackdown on the real-money gaming sector, the Enforcement Directorate (ED) provisionally attached ₹505 crore ($55.69 million) on February 18, 2026. These funds were held in foreign bank accounts in the United States and Singapore linked to the social gaming platform WinZO.
The action is part of a massive money laundering investigation under the Prevention of Money Laundering Act (PMLA), which has now frozen or attached a total of ₹1,194 crore in assets related to the company.
Why the Funds Were Frozen
The ED’s Bengaluru Zonal Office alleges that WinZO engaged in “unscrupulous and criminal practices” to generate what it terms as Proceeds of Crime (PoC).
- The “Bot” Allegation: The ED claims WinZO used AI-driven bots, algorithms, and software (internally referred to as PPP, EP, or Persona) to play against real users. Customers were allegedly led to believe they were competing against other humans in real-money matches.
- Manipulation & Trust Building: Investigators found that the system initially allowed users “easy wins” with lower-skill bots to build trust. Once the stakes were higher, “harder bots” were deployed, leading to substantial user losses—estimated at over ₹734 crore.
- Withdrawal Restrictions: The agency alleges that WinZO restricted or limited user withdrawals, inducing players to keep their money in the app and continue playing, which allowed the company to progressively appropriate funds via “rake commissions.”
- Overseas Siphoning: The ED alleges that direct proceeds of crime were transferred to the US and Singapore under the guise of “overseas investments” to shell companies (WinZO US Inc. and WinZO SG Pte Ltd.), even though the business was entirely controlled from India.
Case Statistics & Timeline
| Metric | Detail |
| Total Proceeds of Crime (Quantified) | ₹3,522.05 crore (FY 2021-22 to Aug 2025) |
| Total Assets Attached/Frozen to Date | ₹1,194 crore |
| Latest Attachment (Feb 18, 2026) | ₹505 crore ($55.69 million) |
| Key Accused | Founders Paavan Nanda and Saumya Singh Rathore |
Recent Developments
- Arrests: The founders were previously arrested in November 2025 as part of the initial investigation.
- Prosecution Complaint: The ED filed a formal prosecution complaint (chargesheet) before a Special PMLA Court in Bengaluru on January 23, 2026.
- Regulatory Context: The investigation was bolstered following the Union government’s nationwide ban on Real-Money Gaming (RMG), which took effect on August 22, 2025. The ED alleges WinZO continued to operate in foreign markets and withheld ₹43 crore of Indian user funds even after the ban.
