6 months ago
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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.
Initial arrest and seizure of assets
On 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.
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
The 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
Throughout 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.
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