- Dutch law enforcement has arrested a man suspected of being connected to the fraudulent activities of the ZKasino internet gambling platform.
- Assets valued at approximately 11.4 million euros ($12.2 million) were seized, including cryptocurrency, real estate, and luxury vehicles.
- The suspect is accused of defrauding victims worldwide of more than $30 million in cryptocurrency.
Dutch authorities take down a major cryptocurrency scam operation, seizing millions in assets and arresting a suspect connected to the ZKasino internet gambling platform.
Dutch Authorities Seize Millions in Assets
The Fiscal Information and Investigation Service (FIOD) reports that a 26-year-old man was arrested under suspicion of fraud, embezzlement, and money laundering in connection to the ZKasino scam. The operation, which reportedly defrauded victims worldwide of more than $30 million in cryptocurrency, was exposed following an investigation that began on April 25. The platform, operating on blockchain technology, attracted investors with promises of substantial returns within 30 days, which were not fulfilled.
The ZKasino Scam
ZKasino launched on April 20, attracting 10,000 investors who contributed more than 10,515 ETH. However, an on-chain transaction revealed ZKasino transferring all 10,515 ETH to the Lido staking protocol, causing investor concern. The platform’s website also underwent changes, including the removal of a statement assuring investors of the return of the ETH. Despite claiming to have successfully closed a Series A investment round valued at $350 million, Big Brain Holdings later clarified that it had not invested in ZKasino and described it as potentially fraudulent.
Conclusion
The arrest and seizure of assets mark a significant step in combating cryptocurrency scams. However, the case serves as a reminder of the risks associated with investing in unverified platforms. As the investigation continues, it is hoped that more light will be shed on the operation and measures can be taken to prevent similar scams in the future.
