The ED had alleged that Gameskraft operated online gaming platforms that manipulated gameplay, cheated users through deceptive practices and laundered proceeds of crime through bogus business expenditure entries and cash transactions. According to the ED, Gameskraft and its associated entities lured users to real-money rummy platforms through bonuses, referral incentives, instant cash offers and tournament benefits.
The agency alleged that new users were initially allowed to win small amounts in low-stake games to build confidence and induce larger deposits, thereby creating a false impression that earning money on the platforms was easy. The ED also claimed that users complained of one-sided games, suspected use of algorithms and bots, duplication of cards, recurring score patterns favouring certain players, collusion among players, forced logouts and blocking of user IDs, resulting in heavy financial losses.
It had further alleged that the directors and founders, acting in collusion with former chief financial officer Ramesh Prabhu, diverted and laundered nearly ₹250 crore under the guise of investments in futures and options and mutual funds.
