The Enforcement Directorate (ED) has arrested the founders of WinZO following a major money-laundering probe that led to the freezing of over ₹505 crore in assets. The arrests come after a wider financial crackdown carried out on November 24, during which the agency froze ₹523 crore belonging to WinZO and another real-money gaming platform, Gameskraft.
According to ED officials, the investigation centres on alleged violations of the Prevention of Money Laundering Act (PMLA). Authorities suspect that the platforms facilitated unlawful financial transactions under the guise of online gaming, routing funds through a complex web of digital wallets, shell entities, and offshore accounts. The probe reportedly uncovered discrepancies in financial reporting and transactions that did not match the declared gaming revenues.
The arrests mark a significant escalation in the government’s scrutiny of India’s online gaming industry, which has been under the scanner for alleged tax evasion, dubious payment flows, and compliance failures. Both WinZO and Gameskraft have previously faced regulatory challenges, including GST disputes and questions over the legality of their gaming formats.
The ED is expected to summon additional executives and financial partners as the investigation widens. Meanwhile, the arrests have sent shockwaves across the booming real-money gaming sector, raising concerns about tighter regulations and increased enforcement action in the months ahead.
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