ED alleges WinZO used bots, AI to manipulate game algorithms and cheat players of Rs 734 crore

The Enforcement Directorate’s Bengaluru zonal office has filed a chargesheet complaint against Winzo, its promoters, and group entities, alleging large-scale manipulation of online games, user losses running into hundreds of crores, and laundering of proceeds through domestic and overseas shell companies.

The complaint was filed on January 23, 2026, before the Special Court under the Prevention of Money Laundering Act (PMLA) in Bengaluru.

The accused include Winzo Pvt. Ltd., its directors Paavan Nanda and Saumya Singh Rathore, and its wholly owned subsidiaries, including Winzo US Inc. in the United States, Winzo SG Pte. Ltd. in Singapore, and Indian entity ZO Pvt. Ltd.

The ED initiated its investigation based on multiple FIRs registered by the Bengaluru CEN Police Station and police authorities in Rajasthan, New Delhi, and Gurugram for alleged cheating offences under the Indian Penal Code, 1860.

As part of the probe, the agency conducted search and seizure operations on November 18, 2025, and December 30, 2025, covering Winzo’s office premises, the residence of one of its directors, and the office of its accounting firm.

These searches led to the seizure of documents and electronic records, and the freezing of movable assets including bank balances, payment gateway balances, mutual funds, bonds, fixed deposits, and cryptocurrency wallets. The total value of attached and frozen assets was estimated at approximately Rs 690 crore.

Winzo operates a mobile-based real-money gaming platform offering more than 100 games, with a claimed user base of about 25 crore users, largely from tier-3 and tier-4 cities. The company earned revenue by charging a commission on user betting amounts and assured players that its platform was transparent, secure, and free of bots.

According to the ED, forensic analysis of game codebases, third-party developer agreements, and internal communications revealed that the games were manipulated. Until December 2023, several real-money games were allegedly embedded with bots, AI tools, and algorithm-driven player profiles.

Between May 2024 and August 2025, the agency said the company changed its approach by simulating historical gameplay data of dormant or inactive users and deploying these profiles against real players without their knowledge or consent.

To conceal these practices, the investigation found that Winzo internally referred to such bots and simulated players using terms such as “Engagement Play”, “Past Performance of Player”, and “Persona”.

Users were initially offered small bonuses and matched against easier bots, allowing limited withdrawals and creating a sense of trust. As players increased their betting amounts, harder or winning bots were allegedly deployed, resulting in sustained losses.

The ED stated that genuine users incurred losses of approximately Rs 734 crore due to these bot-driven plays. It further alleged that even when players won at higher stakes, withdrawals were restricted through platform controls, forcing continued gameplay.

The agency also claimed that Winzo failed to return legitimate user winnings and deposits amounting to Rs 47.66 crore even after the Union government banned real-money gaming apps in August 2025.

Based on its findings, the ED has estimated that Winzo generated proceeds of crime worth Rs 3,522.05 crore between FY22 and FY26, up to August 22, 2025.

The agency also cited evidence from seized electronic devices indicating that the platform’s practices caused severe financial distress among users, particularly those from weaker economic backgrounds, with reports of extreme mental stress and suicidal tendencies.

The investigation further alleged that the proceeds were laundered through shell companies incorporated in the US and Singapore. Around USD 55 million was reportedly transferred to overseas bank accounts under the guise of overseas direct investment.

In addition, Rs 230 crore was allegedly diverted to a subsidiary as purported loans from the holding company without any legitimate business rationale. An attempt to divert another Rs 150 crore through the ODI route failed due to non-submission of mandatory audit and utilisation certificates.

In its prosecution complaint, the ED said it has established that the accused knowingly generated, possessed, used, concealed, and attempted to project the proceeds of crime as untainted property. The agency has invoked offences under Section 3 of the PMLA, read with Section 70, punishable under Section 4 of the Act.

Further investigation in the case is ongoing.