ZKasino fraud suspect arrested, $12.2 million seized by Dutch authorities.
Dutch authorities have arrested a man suspected of fraud surrounding online gambling platform Zcasino.
The Fiscal Intelligence and Investigation Service (FIOD) arrested a 26-year-old man on April 29 on suspicion of fraud, corruption and money laundering.
Dutch authorities seized more than 11.4 million euros ($12.2 million) worth of crypto, real estate and luxury cars, according to a May 3 report by the FIOD.
This marks the first arrest in the ZKasino fraud case, where investors lost at least $33 million in digital assets. The platform initially promised users a return on their investment within 30 days. However, the smart contract suggests that the platform never intended to return the money, according to Dutch authorities.
The suspect's detention has been extended for 14 days for investigation.
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While the identity of the suspect has yet to be confirmed, some members of the crypto community on X have speculated that the pseudonym could be X user Derivatives Monke. In a May 3 X post, noted crypto analyst Fatman said:
“Presumably the person currently in police custody is @Derivatives_Ape himself as the press release mentions a 26-year-old boy and Derivatives Monke is confirmed to be a 26-year-old Dutch national.”
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ZKasino: From Investment to Fraud
ZKasino initially presented itself as an emerging blockchain-based gambling platform, attracting deposits from investors and promising returns within a month. The platform went live on April 20, attracting more than 10,000 investors for 10,515 Ether (ETH).
Investors' concerns were exacerbated on April 20 when an on-chain transaction showed ZKasino moving all 10,515 ETH to the Lido staking protocol.
Users noticed that he changed the wording on the website, removing the statement that ETH “returns”.
Adding fuel to the fire, in a March X post, ZKasino said it closed a Series A investment round worth $350 million with backing from crypto exchange MEXC and venture firm Big Brain Holdings, among others.
Big Brain Holdings has clarified that it has not invested in ZKasino despite receiving a pro-rata token distribution offer from the platform, which “seems fraudulent”.
