Over $30-M ZKasino crypto gambling scam suspect arrested in Netherlands
Advertisement
- The investigation into ZKasino started on April 25, spurred by reports on X & FIOD's departments intelligence.
- ZKasino was marketed as a gambling platform and blockchain casino.
- FIOD collaborated with the Financial Crime Compliance and Investigations Team of Binance.
Follow Invezz on Telegram, Twitter, and Google News for instant updates >
Dutch authorities have apprehended a 26-year-old man on charges of fraud, embezzlement, and money laundering linked to a large-scale cryptocurrency scam through the gambling platform ZKasino, where victims globally invested over 30 million US dollars.
Advertisement
Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signalsâ„¢ for FREE. Takes 2 mins.
Initial arrest and seizure of assets
Copy link to sectionOn Monday, April 29, the Fiscal Information and Investigation Service (FIOD) conducted a raid leading to the arrest of the suspect involved in the ZKasino scam.
Advertisement
The operation included a search of the suspect’s residence where digital data carriers and over 11.4 million euros in assets were seized, including real estate, a luxury car, and various cryptocurrencies.
The suspect was subsequently brought before a magistrate, and his detention has been extended by fourteen days to facilitate further investigation.
Timeline of the investigation
Copy link to sectionThe investigation into ZKasino kicked off on April 25, spurred by reports on platform X (formerly known as Twitter) and intelligence from FIOD’s departments.
ZKasino was marketed as a gambling platform and blockchain casino promising investors a return on their investments within 30 days—a promise that was never fulfilled.
The setup of the smart contract suggested that the returns were never intended, pointing to a potential “rug pull” scheme—a common scam in the crypto space where developers quickly cash out their coins for real money, draining the funds from the associated liquidity pool.
Collaboration with crypto platforms
Copy link to sectionThroughout the investigation, FIOD collaborated with the Financial Crime Compliance and Investigations Team of the cryptocurrency exchange Binance.
This partnership proved crucial in securing millions of euros worth of cryptocurrencies connected to the fraud.
The cooperation between law enforcement and financial platforms highlights the growing complexity and interconnectivity of tracking financial crimes in the digital age.
Advertisement
Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signalsâ„¢.