ED Raids Online Gaming Firms Winzo and Gamezkraft Over Alleged Algorithm Manipulation, Crypto-Laundering Trail

By A Staff Reporter

The Enforcement Directorate (ED) on Thursday launched extensive searches against two major online gaming companies—Winzo and Gamezkraft, which operates the Pocket52 platform—over allegations of cheating players and laundering money through cryptocurrencies. The operations, led by the agency’s Bengaluru Zonal Office, span 11 premises across Bengaluru, Delhi and Gurgaon.

According to officials, the searches are underway at the corporate offices of both gaming operators, as well as the residences of their CEOs, COOs and CFOs. Five locations in Bengaluru, four in Delhi and two in Gurgaon are being covered as part of the coordinated action.

The investigation stems from FIRs filed by multiple victims who alleged that the companies manipulated the algorithm of their gaming apps to place users at a disadvantage, resulting in financial losses for players. The ED is probing whether the alleged manipulation amounts to cheating and whether proceeds were diverted or laundered.

During the searches, officials said they uncovered evidence suggesting that promoters of the companies hold cryptocurrency wallets, raising suspicions of laundering funds through digital assets. “It is unearthed that promoters are owning crypto wallets, indicating laundering through cryptocurrencies,” an official said.