🚨 Arrest and Seizure
On Monday 29th of April, the FIOD arrested a 26-year-old man who is suspected of fraud, embezzlement and money laundering. The investigation focuses on a large-scale scam surrounding the alleged gambling platform ZKasino. On this gambling platform, more than 30 million US dollars in crypto currency has been invested by victims worldwide.
In the investigation, a house was searched and digital data carriers were seized. Over 11,4 million euros worth of various assets, including real estate, a luxury car and various crypto currencies were seized. The suspected was brought before a magistrate and his detention was extended by fourteen days for investigative purposes.
💼 Origins of Investigation
The criminal investigations started on the 25th of April, following reports on platform X (previously twitter) and information from intelligence departments of the FIOD. ZKasino presented itself as a gambling platform and blockchain casino. Investors were led to believe that they would get their investments back within 30 days. That did not happen. The smart contract was set up in such a technical way that suggests that this return was not intended. This could indicate a modus operandi called rug pull (see box text).
🔐 Collaborative Efforts
During the investigation the FIOD worked closely with staff from the Financial Crime Compliance and Investigations Team of cryptocurrency exchange Binance, which helped secure millions of euros in cryptocurrencies.
💻 Digital Financial Investigations
The FIOD's investigation team, together with the Office of the Public Prosecutor, has been conducting digital financial investigations during the last days. In the process, they managed to get in touch with those involved in this scam. In order to return the millions that were deposited by the victims, it is technically necessary for the people involved in this fraud to cooperate. Therefore, this has been explicitly communicated to them. More arrests are not ruled out.
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