In a recent development, Dutch authorities have arrested a 26-year-old man on suspicion of fraud, embezzlement and money laundering in connection with the online gambling platform ZKasino.
The arrest, carried out by the Fiscal Information and Investigation Service (FIOD) on April 29, is the first in this extensive case in which investors lost more than $33 million in digital assets.
More than $11 million worth seized
A report from the FIOD, dated May 3, shows that more than 11.4 million euros worth of cryptocurrency, real estate and luxury cars have been seized. The ZKasino platform, which presented itself as a promising blockchain-based gambling platform, initially promised investors to return their deposits within 30 days. However, the details of the smart contract show that the platform never intended to refund the funds.
The situation escalated when it came to light on April 20 that all 10,515 ETH had been transferred by ZKasino to the Lido staking protocol. Further investigation showed that the platform had also changed the wording on its website, removing an earlier promise to return the ETH.
Suspicions of fraud previously fueled
The arrest follows a series of events in which ZKasino claimed in March to have closed a Series A funding round at a valuation of $350 million, with backing from prominent names such as crypto exchange MEXC and venture capital firm Big Brain Holdings. However, Big Brain Holdings has denied investing in ZKasino, further fueling suspicions of fraud.
The suspect remains in custody for the time being; his detention has been extended for fourteen days for further investigation. The identity of the suspect has not yet been officially confirmed, but there is a lot of speculation within the crypto community about who he could be.
Source: https://newsbit.nl/arrestatie-in-nederland-voor-fraude-met-crypto-gokplatform-zkasino/
