What Led to the Freezing of ₹192 Crore in WinZo's Accounts? A Deep Dive into the Online Gaming Scam

The Enforcement Directorate has frozen ₹192 crore linked to WinZo Pvt Ltd amid an investigation into an online gaming scam. The ED's actions stem from findings that the company misled customers into playing against bots instead of real opponents. With ongoing investigations revealing substantial financial misconduct, including the transfer of funds abroad, this case raises significant concerns about the online gaming industry. Read on to uncover the full story behind this high-stakes investigation.

By Narendra Chaudhary Jan 1, 2026, 19:30 IST

ED Freezes Funds Linked to WinZo's Online Gaming Operations

Bengaluru: The Enforcement Directorate (ED) has taken significant action by freezing approximately ₹192 crore in Proceeds of Crime (PoC) associated with ZO Games Pvt Ltd, an Indian subsidiary of WinZo Pvt Ltd, amid an investigation into an online gaming fraud.

According to a statement from the ED's Bengaluru office, a search was conducted on December 30, 2025, at the accounting firm's premises linked to WinZo Pvt Ltd, under the Prevention of Money Laundering Act (PMLA), 2002. WinZo Pvt. Ltd. operates an online real money gaming platform through its application, WinZO.

The ED reported that during the search, they froze assets worth around ₹192 crore belonging to ZO Games Pvt Ltd, which included bank balances, fixed deposits, and mutual funds, as per Section 17 (1A) of the PMLA.

Previously, on November 18, 2025, the ED had executed search and seizure operations at Winzo Pvt Ltd's office and the residence of its Director.

Investigations revealed that the company was involved in illicit activities, misleading customers into playing against bots or algorithms without their knowledge, rather than real opponents in money games.

Additionally, the ED noted that Winzo had restricted and delayed customer withdrawals from their wallets.

The company reportedly earned PoC through 'Rake Commission' from matches played by bots against real players on the Winzo App, accumulating winnings of approximately ₹177 crore from May 2024 to August 2025, and ₹557 crore from April 2022 to December 2023. Even after the Union Government's ban on Real Money Games, Winzo held ₹43 crore of users' funds.

The ED indicated that the total PoC generated by Winzo Pvt Ltd is around ₹802 crore.

Moreover, a portion of these funds has allegedly been transferred abroad to the USA and Singapore under the guise of overseas investments. Funds amounting to USD 54 million have been deposited in a bank account in the USA, linked to a shell company named 'WINZO US Inc.', while all operational activities are managed from India.

The investigation is ongoing.