Enforcement Directorate Attaches $56 Million in Foreign Accounts Linked to Winzo Gaming App
The Enforcement Directorate (ED) announced on Wednesday that it has attached $56 million, equivalent to approximately Rs 470 crore, in deposits held in foreign bank accounts in the United States and Singapore. These accounts are allegedly held in the names of overseas shell companies associated with the money gaming app Winzo Pvt Ltd, which is operated and controlled by Paavan Nanda and Saumya Singh Rathore.
Total Attachments Reach Rs 1,200 Crore in Money Laundering Case
With this latest action, the total amount attached in this high-profile case has now reached around Rs 1,200 crore. The investigation alleges that the promoters of Winzo Pvt Ltd have been involved in laundering more than Rs 3,500 crore. The specific shell companies identified by the ED are Winzo US Inc in the USA and Winzo SG Pte Ltd in Singapore, both of which are reportedly controlled by Nanda and Saumya Rathore.
Allegations of Unfair Practices and Criminal Activities
According to the ED, the investigation has uncovered that Winzo Pvt Ltd was engaged in criminal activities and unscrupulous practices. The agency stated that customers were made to play real money games against BOTs, AI, algorithms, or software, referred to as PPP, EP, or Persona, without being informed of this fact. This lack of transparency allowed the company to manipulate gameplay and profits.
Furthermore, the ED has accused Winzo of preventing or limiting withdrawals of money held by customers in their Winzo wallets. This restrictive environment, combined with the use of BOTs, allegedly induced users to play more matches, thereby increasing the company's revenue.
Proceeds of Crime Amount to Rs 3,522 Crore
The agency detailed that Winzo Pvt Ltd generated proceeds of crime primarily through 'Rake Commission' from matches played between BOTs and real players on the Winzo app. By employing these deceptive tactics, the company derived total proceeds of crime amounting to Rs 3,522 crore between 2021 and 2025. This significant sum highlights the scale of the alleged financial misconduct.
The ED's actions underscore a broader crackdown on illegal activities in the online gaming sector, emphasizing the need for stricter regulations and transparency to protect consumers from such fraudulent schemes.
