Dutch police have arrested a 26-year-old man amid a law enforcement investigation around ZKasino. The crypto project is allegedly a crypto gambling scam involving more than $30 million.
ZKasino scam suspect arrested
According to the Fiscal Information and Investigation Service (FIOD), authorities detained the individual on April 29, on suspicion of fraud, embezzlement and money laundering. The arrest comes after an outcry from the public in the wake of suspicious activities around the ZKasino platform.
Dutch authorities have seized more than 11.4 million euros ($12.2 million) in crypto assets, real estate and a luxury car from the suspect, FIOD announced on May 3.
Scrutiny on ZKasino increased in mid-April after multiple crypto exchanges and platforms, including Ape Terminal, halted listing of the project’s token amid scam allegations.
FIOD says a criminal investigation into ZKasino launched on April 25.
The probe into the crypto gambling platform revolves around a potential rug pull, with over $30 million invested by people from across the world. Investors were led to believe they would receive returns on their money within 30 days.
Zkasino raised 10,515 ETH from investors in March. Ahead of its launch, ZKasino attracted over 10,000 participants to its $ZKAS token bridge.
However, red flags hit when the team moved all of the ETH to a Lido staking account and changed wording content on its website. Despite widespread condemnation, with security analysts pointing to a potential rug pull, the ZKasino team called these FUD and alleged the project’s launch would go live.
According to FIOD, the suspect will be detained for fourteen days to allow for further investigations.