ED Raids WinZO and Gamezkraft Over Alleged Manipulated Algorithms, Crypto Links
The Enforcement Directorate (ED) is conducting raids on two major online gaming companies — WinZO and Gamezkraft (pocket52.com) — following allegations of “manipulated algorithms” designed to disadvantage players. According to ANI, searches are underway across 11 locations, including five in Bengaluru, four in Delhi, and two in Gurgaon, covering corporate offices and residences of key executives such as the CEO, COO, and CFO. Officials also revealed that the promoters possess crypto wallets, raising suspicions of potential money laundering through cryptocurrency channels.
The FIRs filed by affected gamers allege that the companies rigged their gaming algorithms, prompting the ED’s Bengaluru Zonal Office to initiate search operations. During the raids, officials reportedly uncovered evidence suggesting the use of cryptocurrencies to obscure financial transactions. This comes at a time when the online gaming industry is under heightened scrutiny following the rollout of the Promotion and Regulation of Online Gaming Act on October 1, which led several platforms—including Dream11, My11Circle, WinZO, Zupee, and PokerBaazi—to suspend their real-money gaming services.
Meanwhile, Gameskraft announced in August that it would not contest the new gaming legislation and has already discontinued real-money features on its Rummy platforms. The company stated that it remains committed to compliance and is now focused on shaping long-term strategies aligned with the evolving regulatory environment. It added that cross-functional teams are working on future-ready solutions to align with the updated legal framework and contribute to India’s growing digital gaming ecosystem.
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