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ZKasino rug pull suspect detained in Netherlands

Brian Stone
Edited by
News
ZKasino rug pull suspect detained in Netherlands

Netherlands officials announced the arrest of a suspect in fraud, embezzlement, and money laundering of the gaming platform ZKasino.

The Fiscal Information and Investigation Service (FIOD) statement said that the man, whose name was not released, would remain in custody for 14 days in the Netherlands for investigative purposes.

The agency clarified that the detainee may be involved in a large-scale scam related to the rug pull of the ZKasino project. Numerous complaints led to an investigation into the case, which began on April 25.

The statement said that FIOD worked closely with the Financial Crimes Authority and the Binance crypto exchange team during the investigation. The investigative team, together with the prosecutor’s office, identified those who participated in the rug pull project.

During the arrest, law enforcement agencies confiscated digital assets, real estate, and a luxury car worth $12.2 million. The department did not rule out new arrests in this case.

ZKasino was suspected of a rug pull after user funds amounting to more than $32 million were transferred to unknown wallets. After that, the team closed the Telegram group and stopped responding to messages.

In connection with the incident, the MEXC crypto exchange canceled the listing of the native token of the ZKAS project, and the Ape Terminal platform canceled the IDO.

One of the purported investors, Big Brain, later denied its participation in the funding round. In turn, the MEXC platform stated that it was a victim of the incident.