ED freezes ₹526 crore assets in Gameskraft-linked money laundering probe

The Directorate of Enforcement (ED) has frozen assets worth over ₹526 crore and arrested three directors of Bengaluru-based online gaming company Gameskraft Technologies Pvt Ltd in connection with an alleged money laundering probe linked to its real-money gaming operations.

In a statement issued on Thursday, the federal agency said it conducted search and seizure operations at the offices and residences of the company, its directors and key employees across Bengaluru and the National Capital Region between May 7 and May 13.

According to the ED, the searches led to the seizure of “incriminating documents and electronic records” and freezing of movable assets including bank balances, payment gateway balances, mutual funds, bonds and fixed deposits collectively valued at around ₹526.49 crore. The agency also seized bullion, gold and diamond jewellery weighing 2.3 kg valued at approximately ₹3.5 crore, besides cash worth ₹11 lakh.

The probe stems from multiple FIRs registered in several states under cheating provisions of the Indian Penal Code.

Allegations linked to Rummy platforms

The ED alleged that Gameskraft Technologies operated multiple real-money online rummy platforms under brands such as RummyCulture, RummyPrime, Playship and RummyTime, along with a business-to-business application called RummyCorner. The agency claimed the company had a user base of around three crore across India.

The enforcement agency further alleged that a substantial number of users originated from states where online real-money gaming has been restricted or banned, including Telangana, Andhra Pradesh and Tamil Nadu. According to the ED, the company allegedly tampered with geolocation systems to provide gaming access to users in those states.

The agency also alleged that the company charged commissions ranging between 10% and 15% on user stake amounts while assuring players that the platform was transparent, secure and free from automated bots.

ED alleges use of bots to manipulate gameplay

In one of its most serious allegations, the ED claimed that the company deployed automated bots or algorithms to compete against unsuspecting users on the platform without their knowledge or consent.

According to the agency, users were initially enticed with smaller rewards and permitted to withdraw limited winnings to build trust. However, once players increased their wager sizes, the company allegedly used bots “systematically and strategically”, leading to heavy financial losses for users.

The ED claimed its investigation found that genuine users suffered losses amounting to nearly ₹1,154 crore to bot-controlled user IDs.

The agency further said complaints and grievances received through the company’s app and front desk indicated that several users, particularly those from weaker financial backgrounds, suffered severe financial distress. The ED also alleged that some users experienced “extreme mental distress” and suicidal tendencies due to losses incurred on the platform.

Three directors arrested under PMLA

The ED said it arrested Gameskraft directors Prithvi Raj Singh, Vikas Taneja and Deepak Singh Ahlawat under provisions of the Prevention of Money Laundering Act (PMLA).

The agency alleged that proceeds of crime generated through the gaming operations were subsequently laundered through investments in foreign entities, dividend payments to shareholders, mutual funds, bonds, and movable and immovable properties.

Further investigation is underway, the ED said.