- ZKasino, a blockchain casino and gambling platform, is under scrutiny for an alleged rug pull, with investors claiming their money has disappeared.
- The Dutch authorities have arrested a suspect in connection with the scam, seizing over $12 million in the process.
- Despite the allegations, ZKasino continued to post updates before disappearing from the public eye.
Investors in the crypto gambling platform ZKasino have been left high and dry after an alleged rug pull. A suspect has been arrested in the Netherlands, with over $12 million seized. Despite the allegations, ZKasino continued to update before vanishing.
Suspected Crypto Scammer Arrested
The Fiscal Information and Investigation Service of the Netherlands (FIOD) revealed that a 26-year-old man was arrested for the ZKasino rug pull. The Dutch authorities began investigating the $33 million crypto gambling platform’s scam on April 25, following online reports from the crypto community and information from FIOD’s intelligence departments. Binance’s Financial Crime Compliance team aided the FIOD during the investigation, helping secure millions of euros in cryptocurrencies.
Assets Seized in Investigation
On April 29, the FIOD arrested a man suspected of fraud, embezzlement, and money laundering. The suspect’s detention was extended to fourteen days for investigative purposes. As part of the investigation, the authorities searched the suspect’s house and confiscated around €11.4 million, worth around $12.25 million, in different assets, including real estate, luxury cars, and various cryptocurrencies.
ZKasino, A Scam From The Beginning?
As reported by CoinOtag, the crypto gambling platform scam rumors started in March when decentralized exchange (DEX) ZigZag made serious accusations against the project. ZKasino had allegedly failed to pay developers and other contractors who helped build the platform. Moreover, ZigZag claimed that the fundraising and the project’s valuation were likely fake. The trust in the crypto project did not completely crumble until April 20 when users began reporting suspicious activity after the website started to show changes.
Conclusion
The arrest of a suspect and the seizure of over $12 million in assets mark a significant development in the ZKasino scam case. However, the investigation is ongoing, and further arrests may be made. The case serves as a stark reminder of the risks involved in crypto investments and the importance of due diligence.
