Assets totaling Rs 526 crore and jewellery valued at Rs 3.5 crore were confiscated by the Enforcement Directorate (ED) in connection with a Rs 1,154 crore fraud involving online gaming company Gameskraft Technologies. The ED’s Bengaluru Zonal Office conducted searches at various locations in Bengaluru and the National Capital Region, leading to the seizure of incriminating documents, electronic records, and freezing of assets.
During the operations, the ED seized movable assets such as bank balances, payment gateway balances, mutual funds, bonds, and fixed deposits, amounting to Rs 526.49 crore. Additionally, gold/diamond jewellery weighing 2.3 kg, worth Rs 3.5 crore, and cash totaling Rs 11 lakh were also confiscated. The investigation stemmed from multiple FIRs filed nationwide for cheating offenses under the Indian Penal Code, 1860.
Gameskraft Technologies, known for hosting Rummy games and tournaments through its mobile applications, including brands like RummyCulture and RummyPrime, catered to a user base of around three crore across the country. The ED uncovered that the company manipulated geo locations to offer services in states where online real money gaming is prohibited, leading to significant financial losses for users.
The company, which charged a commission on user stake/wagering amounts, claimed transparency and security on its gaming platform. However, the ED’s investigation revealed that Gameskraft engaged in deceptive practices by allowing users to play against BOTs without their knowledge, resulting in substantial financial losses and mental distress for unsuspecting users. The company’s directors were arrested under the Prevention of Money Laundering Act, 2002, for their involvement in laundering proceeds of crime through various investments.
