Bengaluru: The Directorate of Enforcement (ED) has arrested three founders of an online real-money gaming platform in connection with alleged cheating, fraud and money laundering offences linked to gaming applications such as RummyCulture and RummyTime.
The action was taken under the Prevention of Money Laundering Act following multiple FIRs registered against GamezKraft Technologies and its associated entities.
Officials said several complaints against the company were also linked to alleged suicides of victims connected to online gaming platform scams.
ED conducts raids across Karnataka and NCR
According to the ED, searches were conducted on May 7 at 17 locations across Karnataka and the National Capital Region linked to GamezKraft group companies, founders and employees.
During the raids, officials reportedly seized several incriminating documents and digital evidence connected to the investigation.
The central agency stated that preliminary findings indicated the involvement of the founders in alleged money laundering activities.
Based on the evidence collected during the searches, the ED arrested three founders under Section 19 of the Prevention of Money Laundering Act.
The arrested individuals have been identified as Deepak Singh, Prithvi Raj Singh and Vikas Taneja.
Founders arrested in Bengaluru and NCR
Deepak Singh and Prithvi Raj Singh were arrested in the NCR region.
The ED later obtained transit remand to produce them before a court in Bengaluru.
Vikas Taneja was arrested in Bengaluru and produced before the jurisdictional court.
Officials said the investigation is continuing and further examination of financial transactions and company operations is underway.
The ED is probing allegations that the gaming platforms were involved in unlawful financial activities linked to online gaming operations.
FIRs linked to alleged victim suicides
Authorities stated that multiple FIRs registered against the company involve allegations of cheating and fraud through online gaming applications.
Some complaints are reportedly connected to alleged suicides of individuals who suffered financial losses while using the platforms.
The investigation is focusing on the movement of funds, operational structure of the gaming platforms and alleged violations under anti-money laundering laws.
ED arrests Sriki and two others in Bitcoin scam case
In a separate development, the ED also arrested Srikrishna Ramesh alias Sriki along with two others in connection with the high-profile Bitcoin scam case in Karnataka.
The other arrested individuals were identified as Robin Khandelwal and Sunish Hegde.
The trio was produced before a special ED court, which granted the agency 10 days of custody for further investigation.
Earlier on April 20, ED officials had carried out raids at 12 locations allegedly linked to Sriki, Congress youth leader Mohammed Nalapad and a relative of former Union minister Rahman Khan.
The ED has been investigating the Bitcoin scam for several years over allegations related to illegal cryptocurrency transactions, hacking activities and financial irregularities.
Sriki had previously been arrested in the case and was later released on bail before being taken into custody again.