The largest cryptocurrency market in the world, Binance, was very helpful in helping police catch a suspect connected to the ZKasino scam. People quickly took action after the fake gambling site caused investors to lose millions of dollars in digital assets.
The ZKasino scam was looked into by Binance’s Crime Compliance and Investigations team after the community sent in reports. Open-source intelligence (OSINT) and on-chain tracking were both used by experts to carefully follow the attacker’s movements.
“We’ve scrutinized all smart contracts associated with ZKasino, employing behavioral network analysis to identify both the perpetrators and signers behind the addresses,” said the Binance probe team.
Binance’s Swift Action Leads to Suspect’s Arrest
When Binance discovered who was responsible for the fake smart contracts, they immediately called the police. A report from May 3 by the Fiscal Information and Investigation Service (FIOD) says that the 26-year-old suspect was caught on April 29, and digital assets, real estate, and a luxury car worth $12.2 million were taken away.
This is a big step forward in the case of ZKasino fraud, in which buyers lost more than $33 million in digital assets. According to a story from April 29, Dutch authorities think that the ZKasino platform, which claimed to be a gambling platform and blockchain casino, never meant to return the funds invested.
After police searched for the attackers’ accounts, Binance froze millions of dollars of cryptocurrency stolen in the ZKasino rug pull. The investigations team also helped the Dutch government with on-chain forensics, figuring out how funds moved and knowing how the fake ZKasino smart contracts worked.
Over 10,000 investors lost at least 10,515 Ether in the ZKasino rug pull, which was called an exit scam. The smart contract deployer sneakily stole user assets. The project team suddenly shut down its Telegram channel and stopped people from taking out funds.
After what happened, the native token of the ZKAS project was taken off the MEXC crypto exchange, and the initial coin offering was canceled on the Ape Terminal platform. Big Brain Holdings, a venture capital company, said it had nothing to do with ZKasino and had never put funds directly into the crypto casino.
The investigating team at Binance thanked the community for helping them find and arrest the ZKasino suspect. Notably, crypto investors, including the well-known expert FatMan, think that Derivatives Ape, a fake name for a ZKasino builder, is behind the scam.
Even though someone was arrested, on-chain movements show that more than one person was involved in the rug pull. Binance promises to work closely with the right officials to ensure investors who lost money get it back. The investigation is ongoing, and the FIOD hasn’t ruled out making more charges.
Earlier this month, Binance helped Indian officials shut down a fake investment scheme that looked like a gaming platform. This allowed millions of dollars worth of assets to be recovered.
