Blockchain
Dutch authorities seize 12 million euros in an investigation into scams on gaming platforms
In a major crackdown on fraudulent online gambling, the Dutch Tax Information and Investigation Service (FIOD) has made headlines with the arrest of a 26-year-old man implicated in a multimillion-dollar scam. The arrest, made on April 29, 2024, is part of an ongoing investigation into ZKasino, an alleged gambling platform that allegedly defrauded investors of more than $30 million.
The arrest and kidnapping
The FIOD operation led to the seizure of assets worth approximately €11.4 million, including real estate, a luxury vehicle and various cryptocurrencies. The suspect, whose identity remains unknown, was brought before a magistrate and will be held in custody for a further fourteen days while investigations continue.
Details of the investigation
The investigation into ZKasino began on April 25, 2024, following alerts from Platform X (formerly Twitter) and crucial intelligence from FIOD departments. ZKasino has been marketed as a profitable blockchain casino that offers high returns within 30 days. However, investors soon realized that the returns were illusory, as the platform’s smart contract was designed to prevent any payouts, a tactic known as “rug pull.”
Collaboration with Binance
In the pursuit of justice, FIOD has partnered with the Financial Crime Compliance and Investigations Team of Binance, one of the world’s leading cryptocurrency exchanges. This partnership has proven instrumental in securing millions in stolen assets, highlighting the importance of collaboration between law enforcement and private entities in combating cryptocurrency-related crimes.
Continuous efforts and public awareness
The FIOD and the Public Prosecutor’s Office are intensifying digital financial investigations to trace and recover stolen funds. They contacted the people involved, underlining the need for their cooperation to return the defrauded amounts. Authorities have also hinted at the possibility of additional arrests as the investigation expands.
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