ED Cracks Down On WinZO & Gameskraft: Here’s What Investigators Found In The Raid
ED raided 11 locations linked to WinZO and Gameskraft after FIRs hinted at unfair game algorithms and hidden crypto-linked money movement.
The Enforcement Directorate (ED) raided the offices of online gaming companies Gameskraft and WinZO on November 18. These searches were carried out in Bengaluru, Delhi, and Gurugram. A total of 11 places were checked, including company offices and the homes of top bosses.
According to Moneycontrol sources, some FIRs said these gaming apps may have changed their algorithms to make players lose more. The ED also found crypto wallets linked to the promoters, which may point to money laundering. Both companies have stopped real-money gaming in India.
What ED Found In The Winzo & Gameskraft Raid?
Moneycontrol said that the ED searched five places in Bengaluru, four in Delhi, and two in Gurugram. These were a mix of office spaces and homes of senior executives.
The FIRs filed earlier by victims said the apps were unfair and may have been designed in a way that harmed players.
The ED team also found that the promoters owned crypto wallets, and this raised doubts about whether money was being moved secretly using cryptocurrency.
Moneycontrol reached out to Gameskraft and WinZO for comments, and the story will be updated once the companies reply. These raids come a few months after the government introduced a new law banning all online money-based games.
Under this law, people are not allowed to deposit money in a game if they expect any kind of winning amount from it. Because of this rule, both Gameskraft and WinZO have already stopped their real-money gaming business in India.
Gameskraft used to run the online rummy app called Rummyculture. The company is also dealing with a major fraud case involving its former CFO, Ramesh Prabhu.
He is accused of stealing more than Rs 270 crore over almost five years. An FIR was filed against him in Bengaluru's Marathahalli police station after Gameskraft complained.
Gameskraft & WinZO’s Background
WinZO hosts over 100 games in many Indian languages, all made by different game developers. The company also runs its gaming business in the United States and Brazil.
Even though it stopped real-money gaming in India because of the new ban, its large platform continues to operate for non-money games. Both companies are now under ED scrutiny as investigations continue.
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