7 months ago

ED Charges Winzo in ₹3,522 Crore Fraud Case

ED Charges Winzo in ₹3,522 Crore Fraud Case
Probe Agency ED Files Complaint Against Winzo, Alleges Rs 3,522 Crore Scam · NDTV

The Enforcement Directorate (ED) in Bengaluru has accused the online gaming company Winzo and its directors of cheating and money laundering.

They say Winzo tricked users, especially from smaller cities, by making them lose money through fake games and bots.

The company is also accused of not returning users' winnings and moving illegal money abroad.

The ED has frozen assets worth ₹690 crore and estimates that the total fraud amounts to ₹3,522.05 crore.

The investigation is still ongoing.

Key facts

Companies Involved
Winzo Pvt. Ltd., Winzo US Inc., Winzo SG Pte. Ltd., ZO Pvt. Ltd.
Accused Individuals
Paavan Nanda, Saumya Singh Rathore
Alleged Fraud Amount
₹3,522.05 crore
User Losses
₹734 crore
Unreturned Winnings
₹47.66 crore
Assets Frozen
₹690 crore
Funds Transferred Abroad
USD 55 million
Funds Diverted Domestically
₹230 crore

Timeline

  1. ED probes MP, MLAs' money laundering, uncovers WinZO's alleged illegal activities.

  2. ED's Ponzi scheme investigation also exposes WinZO's alleged wrongdoings.

  3. ED discovers WinZO's alleged bot use, non-refund of user money.

  4. ED's findings lead to latest accusation against WinZO.

  5. ED accuses WinZO, directors of cheating users out of ₹3,522 crore, money laundering.

Quotes

Enforcement Directorate

Indian financial crime investigation agency

“For providing these RMG (real money gaming) services, the company charged a percentage of the betting amounts from the users, as commission. The company also assured its users that its gaming platform was free from any BOTs (bots which are computer-controlled characters), was transparent and secure.”
rediff.com
“Evidence found from the seized electronic devices also revealed that this manipulative gaming structure of Winzo caused severe financial distress to users (especially those from a poor financial background), and some users reportedly experienced extreme mental distress and also suicidal tendencies.”
rediff.com

Sources

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