Online Gaming Scandal: WinZO Founders Arrested for Money Laundering

WinZO founders Saumya Singh Rathore and Paavan Nanda were arrested by the Enforcement Directorate (ED) on money laundering charges. The ED claims WinZO withheld Rs 43 crore from gamers post the Indian real-money gaming ban, and funneled funds overseas disguising them as investments.

Saumya Singh Rathore and Paavan Nanda, the founders of the online gaming platform WinZO, have been taken into custody by the Enforcement Directorate (ED) over allegations of money laundering. The arrest occurred in Bengaluru following intensive interrogation by the federal agency.

According to officials, a local court has remanded the duo to one-day custody, with a comprehensive order expected soon. The ED has accused WinZO of withholding Rs 43 crore in funds that should have been refunded to gamers, following the government's ban on real-money gaming in India.

The ED's investigation has led to the freezing of WinZO's assets worth Rs 505 crore under the Prevention of Money Laundering Act (PMLA). In response, WinZO maintains that it operates with fairness and transparency, and is fully compliant with applicable laws.

(With inputs from agencies.)