ED freezes Rs 526 crore in Gameskraft case
15 May 2026, 12:02 PMThe ED also alleged that the gaming company used bots to play games against users without their knowledge, causing losses of about Rs 1,154 crore to players.
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The Enforcement Directorate (ED) has frozen assets worth over Rs 526 crore in connection with its money laundering investigation into Gameskraft Technologies, days after arresting the three co-founders of the Bengaluru-based gaming firm.
The ED also alleged that the gaming company used bots to play games against users without their knowledge, causing losses of about Rs 1,154 crore to players, as per a statement issued on Wednesday.
Th agency said it carried out raids between May 7 and May 13 at multiple locations linked to the company’s directors and senior employees in Bengaluru and the NCR region. During the searches, officials seized bank balances, mutual funds, fixed deposits, and bonds worth Rs 526.49 crore. Jewellery valued at Rs 3.5 crore and Rs 11 lakh in cash were also recovered.
The action follows the arrest of Gameskraft co-founders Deepak Singh, Prithvi Raj Singh, and Vikas Taneja under the Prevention of Money Laundering Act (PMLA) last week. The investigation is based on several FIRs registered in different states accusing the company of cheating users and generating unlawful gains through online gaming operations.
Gameskraft operated apps including RummyCulture, RummyPrime, Playship, RummyTime, and RummyCorner.
The agency alleged that the company bypassed restrictions in states where real-money gaming is banned by altering users’ geo-location data.
The ED further claimed that users were initially allowed to win small amounts to build confidence before being matched against automated bot accounts during higher-value games, resulting in major losses for genuine players.
Investigators also alleged that the proceeds from these activities were diverted into overseas entities, investments, dividend payouts, and both movable and immovable assets. The probe is continuing.
The arrests come at a time when India's online gaming industry is facing growing pressure from tax and enforcement authorities. Several platforms have come under the scanner in recent months over alleged violations related to GST, foreign exchange rules, and money laundering.
Recently, RUGR Fintech, a venture backed company that has actor Hrithik Roshan as its brand ambassador, was among the three fintech and tech firms that came under the scanner of the Hyderabad unit of the Directorate General of GST Intelligence (DGGI).
Earlier in February, Fino Payments Bank CEO Rishi Gupta was arrested. Gupta was granted bail later in March after his writ petition challenging his arrest was rejected by the Telangana High Court.
The Head and Tale had exclusively reportedthat Gupta's arrest connected to an ongoing DGGI investigation into Wegofin Digital Solutions, technology service provider (TSP), and a Rs 5,000 crore illegal gaming-fintech network it is alleged to be part of.
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