ED raids Gamezkraft, WinZO over algorithm rigging, crypto trail

The Directorate of Enforcement (ED) on Tuesday conducted searches at two online gaming companies owning websites, namely WinZO app and Gamezkraft (pocket52.com). A total of 11 premises were covered, out of which five are in Bengaluru, four in Delhi and two in Gurugram.

Searches were also carried out at the corporate office premises of the gaming operators, along with residence of respective CEO, COO and CFO.

It is alleged in the FIRs filed by the victims that these gaming companies had manipulated the algorithm of the app, putting the gamers at disadvantage.

During the search, it was discovered that promoters owned crypto wallets, indicating laundering through cryptocurrencies.

The move comes months after the government introduced an online gaming law that placed a blanket ban on online money games, wherein a user makes a deposit, directly or indirectly, with the expectation of earning winnings on that deposit.

Gameskraft and WinZO subsequently discontinued their real-money business in the country.

Gameskraft operated online rummy app Rummyculture. Meanwhile, WinZO offers over 100 games in 15 Indian languages developed by third-party game developers from around the world on its platform. The company also has its presence in the US and Brazil.