Arrest of Suspected Crypto Scammer
Dutch authorities arrested a 26-year-old man in connection with the ZKasino rug pull, a $33 million crypto gambling platform scam. The investigation began on April 25 after reports from the crypto community and intelligence agencies. Binance’s Financial Crime Compliance team assisted in securing millions of euros in cryptocurrencies.
Confiscated Assets
During the investigation, authorities searched the suspect’s house and seized approximately €11.4 million ($12.25 million) in assets, including real estate, luxury cars, and various cryptocurrencies. Further arrests are possible as cooperation from the scammers is needed to recover stolen funds.
ZKasino: A Scam from the Start
Rumors of the scam emerged in March when ZigZag, a rival crypto exchange, accused ZKasino of failing to pay developers and contractors. ZigZag also claimed that the fundraising and project valuation were likely fake.
Suspicious Activity and Stolen Funds
On April 20, users reported suspicious activity on the ZKasino website. Despite promises of a 30-day investment return, users found their funds locked in ZKAS with a 15-month vesting period. The bridge became inaccessible, and the project’s social media account continued to post updates until April 24.
Investigation Findings
FIOD’s investigation revealed that ZKasino’s promises were never intended to be kept, as the smart contract setup indicated that the funds’ return was not intended.
