ED Raids Gameskraft & WinZO: Rigged Games Exposed, Crypto Connections Revealed
Enforcement Directorate storms gaming giants in explosive crackdown
The Investigation Unfolds
Federal agents descended on Gameskraft and WinZO headquarters this morning, seizing servers and financial records in a coordinated raid that's shaking India's gaming industry. Sources confirm the operation targets alleged systematic game manipulation and suspicious cryptocurrency transactions flowing through both platforms.
Digital Paper Trail
Forensic teams are tracing millions in crypto transfers linked to offshore accounts—because nothing says 'legitimate gaming' like moving profits through decentralized networks that bypass traditional banking oversight. The timing couldn't be worse for an industry already battling regulatory scrutiny.
Industry Fallout
Shares in related tech firms plummeted as news broke, while crypto markets showed nervous volatility. The raids expose how quickly 'innovation' can turn into alleged manipulation when real money—and anonymous digital assets—enter the equation. Another reminder that in the wild west of gaming finance, the house doesn't always play fair.
Searches conducted at 11 spots
According to people familiar with the operation, the agency covered 11 locations in one go — 5 in Bengaluru, 4 in Delhi, and 2 in Gurugram.
Investigators visited both the corporate offices of the companies and the homes of key executives, which suggests that the ED is looking closely at personal financial records in addition to company data.
FIR accuses platforms of tilting games against users
The searches were triggered by FIRs filed by several individuals who claimed that the platforms were not running on a fair algorithm.
A source told Moneycontrol: “FIRs filed by victims alleged that these gaming companies had manipulated the algorithm of the app, putting the gamers at a disadvantage. The searches also unearthed that Promoters are owning crypto wallets, indicating laundering through cryptocurrencies.”
The ED is now expected to examine transaction logs, code history, and communication records to see whether game outcomes were influenced artificially.
Crypto trail under security
The finding of crypto wallets allegedly tied to the promoters has given the investigation a fresh twist. Officials are now looking into whether any player deposits or winnings were routed through cryptocurrencies, possibly to keep the transactions off the radar or sidestep taxes.
This line of inquiry has become common in ED cases involving digital platforms, especially after the agency tracked similar patterns in betting and investment frauds.
Raids follow the government’s ban on real-money games
The raids come just months after the Union government’s new online gaming rules, which effectively banned all real-money games where users deposit money in the hope of earning winnings.
After the new rules took effect, both Gameskraft and WinZO shut down their real-money operations in India, though their apps continue to run non-monetary formats and content.
Gameskraft’s ongoing internal fraud case
Gameskraft, which ran the rummy platform Rummyculture, has already been dealing with a different controversy. The company earlier accused its former CFO, Ramesh Prabhu, of siphoning off ₹270.43 crore over nearly five years.
An FIR was filed at the Marathahalli police station in Bengaluru following the company’s complaint. The alleged fraud dates back several years and raised questions about the company’s internal checks.
The ED probe now adds to the company’s troubles, as investigators will likely revisit older financial records as well.
WinZO’s wider footprint
WinZO runs a large mix of games — more than 100 titles — available in 15 Indian languages and created by a range of developers both within the country and abroad.
Over the past few years, the company has also pushed into the US and Brazil, where the regulatory landscape is far lighter than in India. Back home, WinZO has been reworking its business model and adjusting its operations ever since the government banned money-based gaming.
A sector under pressure
The raids underline the growing pressure on India’s online gaming industry, which has gone through rapid expansion, sudden regulatory changes, and now stricter enforcement.
Ever since digital games involving money became popular, regulators have been worried about unfair game mechanics, misleading claims, and non-transparent financial routes, especially after crypto became a preferred channel for moving money.
More details are expected once the ED completes its seizure of devices and data. Both Gameskraft and WinZO have been contacted for comments, and their responses are awaited.
Also Read: India’s Crypto Hubs Tied to INR 623-Crore Laundering Network
