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Dutch authorities have detained a 26-year-old individual linked to the ZKasino online gambling scam, involving allegations of fraud, embezzlement, and money laundering.
On April 29, the Fiscal Information and Investigation Service (FIOD) made the arrest, confiscating assets totaling over 11.4 million euros ($12.2 million), including cryptocurrency, real estate, and luxury vehicles, as reported by FIOD on May 3.
This arrest marks a significant development in the ZKasino fraud saga, where investors reportedly lost upwards of $33 million in digital assets. The platform initially pledged to reimburse investors within 30 days, but Dutch authorities allege that the smart contract never intended to honor these promises.
The suspect’s detention has been extended by 14 days for further investigation, although their identity remains unconfirmed. Speculation within the crypto community has circulated regarding the individual’s identity.
ZKasino entered the scene as a blockchain-based gambling platform, attracting substantial deposits from investors with promises of swift returns. However, on April 20, concerns escalated when an on-chain transaction revealed ZKasino transferring all deposited Ether into the Lido staking protocol.
Furthermore, discrepancies emerged regarding ZKasino’s purported Series A investment round, where it allegedly secured a $350 million valuation with support from MEXC and Big Brain Holdings. However, Big Brain Holdings clarified that it had not invested in ZKasino, branding it as a fraudulent entity.