ED raids WinZO and GamezKraft offices over alleged algorithm manipulation, crypto trail: Key details

The Enforcement Directorate (ED) on Tuesday, November 18, carried out coordinated searches against online gaming firms WinZO and GamezKraft (operator of Pocket52.com) over allegations of cheating, algorithm manipulation and suspected laundering through cryptocurrencies. The action was launched by the agency’s Bengaluru Zonal Office.

11 premises searched across three cities

According to officials, the ED is covering 11 locations — five in Bengaluru, four in Delhi and two in Gurugram. Searches are underway at the corporate offices of both companies and at the residences of their CEOs, COOs and CFOs. The operation is being conducted under the Prevention of Money Laundering Act (PMLA).

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FIRs allege ‘rigged algorithms’ and unfair gaming

The probe stems from multiple FIRs filed by players who claimed that the companies had manipulated their gaming algorithms.

Complainants alleged that the platforms created an unfair disadvantage for users, allowing the operators to profit illegally. Investigators are examining whether algorithmic settings were altered to influence outcomes on real-money gaming platforms.

Crypto wallets found during searches

Officials said searches have revealed that some promoters own crypto wallets, raising suspicion of laundering through digital assets. The agency is now tracing on-chain movements, wallet linkages and potential conversion of gaming revenues into cryptocurrencies.

The ED is scrutinising:

• Transaction logs
• Server-side data
• Payment gateway flows
• Crypto exchanges linked with the wallets
• Revenue patterns and withdrawals

Sources said the analysis will determine whether illegal gains were routed through crypto channels or used to conceal proceeds of crime. Investigators are also scrutinising the companies’ revenue models, user grievance records and backend server logs to verify whether game outcomes were deliberately altered to mislead players. Officials said the probe may expand to include payment gateways, advertising partners and third-party vendors if evidence points to a wider network enabling illicit fund flows. The searches come amid rising regulatory focus on the online gaming sector following repeated complaints of cheating, addiction-linked harm and opaque business practices. ED investigations into gaming platforms have increased since 2022, especially where real-money components are involved.