Bengaluru-based gaming company Gameskraft has faced an F&O trading scam amounting to ₹250 crore, perpetrated by its own senior employee, Ramesh Prabhu. Prabhu misused company funds for personal gain and created fake documents. Consequently, the company had to write off ₹270 crore, leading to the decision to shut down apps like Pocket52.
Online Real Money Gaming: Ramesh Prabhu, a senior employee at Bengaluru-based real money gaming company Gameskraft Technologies, misused company funds of ₹250 crore by investing them in F&O trading, causing significant losses to the company. Prabhu confessed to his mistake via email and presented the transactions as investments by creating fake documents. Due to this fraud, the company had to write off ₹270 crore in its FY25 accounts, after which the decision was made to shut down popular apps like Pocket52.
Company's Trust Betrayed
Former Group CFO of the company, Ramesh Prabhu, is accused of using company funds for Futures & Options (F&O) trading. This action resulted in a loss of approximately ₹250 crore for the company. This case has become a topic of discussion in the gaming industry due to the internal fraud involved.
Email Uncovers the Scheme
The scam came to light when Ramesh Prabhu sent an email to the company on March 5. In it, he confessed that he had been using company funds for his trading activities for the past 3-4 years. He also stated that no other employee was involved in this activity and that he had made all decisions independently.
Following this email, the company immediately initiated an internal investigation. The investigation revealed that illegal transactions amounting to approximately ₹231 crore had been made.
False Narrative Fabricated with Fake Documents
The FIR filed against Ramesh Prabhu includes serious charges such as theft, breach of trust, cheating, and forgery. The report states that Prabhu transferred money from the company's bank accounts to his personal account via RBL Bank. Furthermore, he created fake mutual fund statements and bank records to disguise these transactions as investments.
This scam necessitated the company to write off approximately ₹270 crore in its FY 2025 accounts. This means this amount is now irrecoverable for the company.
Government's Strict Stance
This case has surfaced at a time when the Indian government has intensified its crackdown on online real money gaming. Due to the new regulations, Gameskraft has decided to shut down its popular rummy and poker apps like Pocket52. The company has clarified that it will no longer pursue legal battles and will explore new digital gaming solutions in compliance with the country's laws.
Impact on the Industry
Experts believe that this incident could affect the credibility of the online gaming industry. Internal fraud and substantial fund losses have raised concerns among investors and users. Additionally, the increasing stringency and regulatory changes surrounding real money gaming in India are also proving to be challenging for companies.
