Dutch authorities apprehended an individual suspected of being involved in the ZKasino online gambling platform scam. The Fiscal Information and Investigation Service (FIOD) arrested a 26-year-old on April 29, who is accused of fraud, embezzlement, and money laundering. According to a report by FIOD on May 3, the Dutch authorities confiscated over 11.4 million euros ($12.2 million) worth of cryptocurrency, real estate, and luxury cars.
This arrest is significant as it is the first in the ZKasino fraud case, which resulted in investors losing at least $33 million worth of digital assets. The platform initially promised users that their investments would be returned within 30 days. However, Dutch authorities have found evidence suggesting that the platform never intended to fulfill this promise, as indicated by the smart contract.
The suspect’s detention has been extended by 14 days for further investigation. While the identity of the suspect has not been confirmed, some members of the crypto community on X have been speculating about who they might be.
ZKasino was initially presented as a blockchain-based gambling platform that attracted deposits from investors by promising high returns in a short period. The platform went live on April 20 and received over 10,515 Ether (ETH) from more than 10,000 investors. Concerns among investors grew when a transaction on the blockchain showed that ZKasino had transferred all 10,515 ETH to the Lido staking protocol.
Furthermore, users noticed that the wording on ZKasino’s website had been changed, removing the statement that assured the return of the ETH. Adding to the suspicions, ZKasino claimed in a March post on X that it had successfully closed a Series A investment round with a valuation of $350 million, with support from MEXC crypto exchange and Big Brain Holdings, among others. However, Big Brain Holdings clarified that it had not invested in ZKasino and considered it to be fraudulent, despite receiving a token distribution offer from the platform.
[Image: Big Brain Holdings]
Source: Big Brain Holdings