Dutch Authorities Arrest Suspect in ZKasino Online Gambling Scam

On April 29, Dutch law enforcement arrested a man believed to be connected to the fraudulent activities associated with the ZKasino internet gambling platform.

During the operation, authorities confiscated assets valued at approximately 11.4 million euros ($12.2 million), including cryptocurrency, real estate, and luxury vehicles.

Dutch Authorities Seize Millions in Assets

According to a Fiscal Information and Investigation Service (FIOD) report, the 26-year-old man was arrested under suspicion of fraud, embezzlement, and money laundering in connection with the scam, which has reportedly defrauded victims worldwide of more than $30 million in cryptocurrency.

The suspect, whose identity remains undisclosed, was arrested following an investigation into ZKasino’s activities that began on April 25 after reports surfaced on social media platform X and intelligence gathered by FIOD departments.

The platform, which presented itself as a gambling venue operating on blockchain technology, attracted investors with promises of substantial returns within 30 days which were not fulfilled.

The FIOD’s report shed light on the means used by the alleged perpetrators, suggesting it was a “rug pull.” According to Dutch authorities, the platform’s smart contract hinted at a deliberate scheme to withhold investor returns.

Authorities raided a property linked to the suspect, seizing digital data carriers and assets valued at over 11.4 million euros. Among the confiscated assets were luxury cars, real estate properties, and various cryptocurrencies.

Following his arrest, the suspect was brought before a magistrate, who extended his detention by fourteen days to allow for further investigation.

The ZKasino Scam

The platform launched on April 20, attracting 10,000 investors who contributed more than 10,515 ETH. On April 20, an on-chain transaction revealed ZKasino transferring all 10,515 ETH to the Lido staking protocol, causing investor concern.

Users also observed changes to the platform’s website, including the removal of a statement assuring investors of the return of the ETH. Adding to suspicions, ZKasino claimed in a post on X in March to have successfully closed a Series A investment round valued at $350 million, with support from crypto exchange MEXC and venture firm Big Brain Holdings among others.

Big Brain Holdings invested into the @zigzagexchange project in 2022, which subsequently resulted in financial losses for us. Some of the previous founders of that project are now part of the @ZKasino_io team, which appears to be fraudulent.

We have never invested in ZKasino…

— Big Brain Holdings (@BigBrainVC) April 21, 2024

However, Big Brain Holdings later clarified that it had not invested in ZKasino and described it as potentially fraudulent, despite receiving a token distribution offer from the platform.

Meanwhile, although the suspect’s identity remains unverified, there is speculation that it might be the pseudonymous X user Derivatives Ape, as stated in a March 3 post on X by crypto analyst FatMan.