Publication date 03-05-2024, 9:30
The FIOD arrested a 26-year-old man on Monday, April 29. He is suspected of fraud, embezzlement and money laundering. The investigation focuses on a large-scale scam surrounding the alleged gambling platform ZKasino. More than 30 million US dollars worth of cryptocurrency has been invested in this gambling platform by victims worldwide. To this day, this money is locked in their cryptocurrency wallets, which require special keys.
A home was searched and physical and digital administration and digital data carriers were seized. More than 11.4 million euros in various assets have also been seized, including real estate, a luxury car and various cryptocurrencies. The suspect was brought before the examining magistrate on May 2 and his detention was extended by fourteen days.
The criminal investigation started on April 25, after signals on platform X (formerly Twitter) and information from intelligence departments of the FIOD. ZKasino presented itself as a gambling platform and blockchain casino. Investors were told that they would get their investments back within 30 days. However, that did not happen. The technical way in which the smart contract was set up on the blockchain also suggests that this return was not the intention. This could indicate a modus operandi that back pull (see box) is mentioned.
The investigation involved close collaboration with employees of the Financial Crime Compliance and Investigations Team of the crypto trading platform Binance, which enabled millions of euros in crypto to be secured.
The FIOD investigation team, together with the Functional Public Prosecutor’s Office, has conducted a digital financial investigation in recent days. We managed to get in touch with those involved in this scam. In order to return the millions invested to the victims, it is technically necessary that those involved in this scam cooperate. This has been expressly communicated to them. More arrests cannot be ruled out.
If you have fallen victim to this scam and would like to contact the FIOD, you can do so via: [email protected]
For media questions, email: fiod.persvoorlichting@ tax service.nl
For information!
What is a Back Pull?
Developers of cryptocurrency projects often raise investments for their projects. A certain amount of cryptocurrency tokens (created by the developers) is often given in return. This can be compared to purchasing shares of a company. Developers themselves often own (a high percentage of) tokens.
In a Rug Pull, a project suddenly stops and a large amount of the tokens (shares) are often sold (dumped) by the developers, causing the price of the shares to plummet. The developers then disappear with the money from this dump, leaving investors with tokens that are worth very little or nothing anymore.
Tags: million seized arrested investigation fraud gambling platform
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