In a significant development in the ongoing investigation into the ZKasino scam, Dutch authorities have made a breakthrough by apprehending a suspect allegedly involved in the fraudulent activities surrounding the crypto project.
The suspect, a 26-year-old individual, was arrested by the Fiscal Information and Investigation Service (FIOD) on April 29 following suspicions they are related to the ZKasino online gambling platform. The authorities disclosed in a report on May 3 that they extended the suspect’s detention by 14 days for investigative purposes.
The Dutch authorities also claimed that they have seized assets worth over 11.4 million euros ($12.2 million), including cryptocurrency, real estate, and luxury vehicles, in connection with the case.
This marks a significant step forward in the investigation, which has seen investors lose at least $33 million in digital assets due to the ZKasino scam.
The scam unfolded after the platform’s launch on April 20. The scam began after the platform was launched on April 20. Investors were promised to receive returns within a month of the launch. However, after the launch, investors were disappointed to find out that their investments had been redirected. They were given no option for redemption as initially promised. The website of the project was then modified, and the language that guaranteed refunds was removed. Instead, a prolonged vesting period for $ZKAS tokens was introduced.
The sudden changes in plans and disappearance of investor funds sparked outrage within the crypto community, leading to widespread condemnation of ZKasino and its operators and allegations of a rug pull.
In response to the outrage, token launchpads such as Ape Terminal and AIT Launchpad, along with exchange MEXC, distanced themselves from ZKasino, cancelling its IDO and listing. Meanwhile, investors watched helplessly as their assets, totalling $33 million in ETH, were deposited into the Lido staking platform.
Initially, ZKasino appeared to be a typical crypto project, boasting a $350 million valuation for its Series A round and garnering investments from various sources, including crypto exchange MEXC. However, warning signs began to emerge, with reports of accusations against the team by former colleagues and blockchain sleuths. Pseudonymous crypto sleuth @zachxbt had previously raised concerns about the project’s integrity, citing allegations of stolen funds and questionable business practices.
Investigations revealed that despite assurances of refunds, the smart contract governing the platform never intended to fulfil these commitments.
Speculation has been rife within the crypto community regarding the identity of the arrested individual, with some suggesting that it could be the pseudonymous user known as Derivatives Monke. However, the suspect’s identity remains unconfirmed.
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