Cryptocurrencies

Arrest Made in Connection to ZKasino Rug Pull Suspect

Around two weeks ago, the crypto space was rocked by yet another suspected rug pull. This time, allegations were made against the gambling platform and blockchain casino ZKasino, with numerous investors claiming they had lost their funds. Despite the accusations, ZKasino continued to provide updates before disappearing from the public view, along with the investors’ money. Recent developments reveal that a suspect was apprehended in the Netherlands by Dutch authorities, and over $12 million was confiscated during the process.

Arrest of Suspected Crypto Scammer
The Fiscal Information and Investigation Service of the Netherlands (FIOD) disclosed on Wednesday that a 26-year-old man had been arrested earlier in the week in connection with the ZKasino rug pull. Following online reports from the crypto community and information from FIOD intelligence departments, the Dutch authorities began probing the $33 million scam involving the crypto gambling platform on April 25. The Financial Crime Compliance team at Binance assisted FIOD in securing millions of euros in cryptocurrencies during the investigation. Furthermore, the Office of the Public Prosecutor aided in reaching out to members of the ZKasino Team. On April 29, the suspect was detained on charges of fraud, embezzlement, and money laundering. The suspect’s detention was extended for fourteen days for investigative purposes. The authorities conducted a search of the suspect’s residence and seized around €11.4 million, equivalent to approximately $12.25 million, in various assets, including real estate, luxury cars, and multiple cryptocurrencies. Further arrests are not ruled out as the cooperation of the involved scammers will be necessary to recover and return the stolen funds to the victims.

ZKasino: A Scam from Inception?
As reported by Bitcoinist, rumors of a scam concerning the crypto gambling platform began surfacing in March when the decentralized exchange (DEX) ZigZag levied serious accusations against the project. According to ZigZag, ZKasino had failed to compensate developers and other contractors involved in building the platform. Additionally, the rivaling crypto exchange claimed that the fundraising and project valuation were likely fabricated, stating that the previously announced $40 million ecosystem was not genuine and may never be disbursed in real currency. Despite initial skepticism, doubts about the crypto project did not escalate until April 20 when users started noticing suspicious activity following website modifications. Concerns arose when the bridged Ethereum could not be accessed after the chain went live. The team later attributed this to maintenance and claimed it would be revamped alongside the launch. Despite the project’s attempts to address user complaints, suspicions mounted, particularly after users were unable to retrieve their funds. FIOD’s investigation suggested that ZKasino’s commitments were never intended to be fulfilled, given the smart contract’s design indicating that the return of the funds was not the ultimate goal.

The total crypto market cap stands at $2.22 trillion in the bi-weekly chart. Source: TOTAL on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com



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