Gameskraft Probe: ED Freezes Assets Worth ₹526 Cr, Alleges Bot-Based Manipulation

The Enforcement Directorate (ED) has frozen assets worth ₹526.49 Cr, seized gold jewellery worth ₹3.5 Cr and ₹11 Lakh cash as part of its ongoing money laundering probe against Gameskraft Technologies.

The probe agency, in a statement, said searches conducted during May 7-13 across Bengaluru and Delhi NCR led to the freezing of movable assets, including bank deposits, payment gateway balances, mutual funds, bonds and fixed deposits.

The ED also seized gold and diamond jewellery worth ₹3.5 Cr during the raids conducted under the Prevention of Money Laundering Act (PMLA).

The statement came days after the agency arrested Gameskraft cofounders Deepak Singh, Prithvi Raj Singh and Vikas Taneja in connection with the case.

Earlier this week, the Karnataka High Court issued notices to the ED in response to writ petitions filed by the three cofounders challenging their arrests. The court sought a response from the agency on the pleas and posted the matter for further hearing on May 14.

The investigation was initiated on the basis of multiple FIRs registered across various states alleging cheating offences under the IPC.

Founded in 2017 by Prithvi Raj Singh, Deepak Singh and Vikas, Gameskraft was an online gaming startup which operated apps like RummyCulture, RummyPrime, Playship and RummyTime, apart from a B2B platform called RummyCorner. It had a user base of nearly 3 Cr across India.

According to the agency, a large number of users came from states like Telangana, Andhra Pradesh and Tamil Nadu, where online real money gaming is banned. It alleged that Gameskraft bypassed geolocation restrictions to continue offering its services there.

Further, the ED said Gameskraft charged commissions of 10%-15% on user stakes while claiming that the platform was transparent and free from bots. However, it was found that users were unknowingly made to play against bots and automated algorithms on the platform.

During the investigation, the probe agency found that users were initially lured by small winnings and smooth withdrawals to build trust. However, once they started participating in higher-stake games, bots were allegedly deployed strategically against them, resulting in estimated total user losses of around ₹1,154 Cr.

The ED further claimed that complaints received through the platform pointed to severe financial distress and mental trauma among some users, particularly those from weaker financial backgrounds. Some users allegedly reported suicidal tendencies.

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

The latest development comes amid tighter regulatory scrutiny of the online gaming sector following the enactment of the Promotion and Regulation of Online Gaming Act, 2025, which imposed a nationwide ban on online real-money gaming while allowing e-sports and online social games under a regulated framework.

The law, passed in Parliament in August 2025, officially came into effect on May 1 this year. 

Last month, MeitY also notified detailed rules for the sector, including restrictions on real-money gaming platforms and related advertisements.

Gameskraft has been among the startups affected by the regulatory crackdown and laid off more than 400 employees as part of restructuring and cost rationalisation efforts.

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