- During a physical and digital evidence search of the suspect’s residence, Dutch investigators seized assets valued at over $12 million.
- The suspect is a member of the ZKasino squad, the agency stated.
- Over $33 million in ether that was bridged on ZKasino’s network is still owed to investors.
A 26-year-old man was taken into custody by Dutch financial crime detectives on Monday on allegations of money laundering, fraud, and embezzlement in connection with a purported rug pull operation that was the source of the Web3 gambling network ZKasino.
The suspect’s residence was examined by investigators, who found tangible and digital evidence as well as a variety of assets valued at 11.4 million euros ($12.2 million), including cryptocurrency and real estate, the Fiscal Information and Investigation Service of the Netherlands (FIOD) said in a statement today.
The FIOD also mentioned the potential for further ZKasino-related arrests in the future. The FIOD said that the suspect is a member of the ZKasino team, even if the statement did not specifically say how he was associated with the project.
Around the time of debut, ZKasino, which began as a decentralized gaming site, abruptly altered its token redemption policies. The team’s original pledge to allow investors to recover their bridged ether tokens was thwarted by this modification. Almost 10,000 investors have already crossed over $33 million in cryptocurrency on ZKasino at launch, prompting some to call the project a scam.
Investors were promised a 30-day return on their money, but that did not transpire, according to the FIOD’s statement. The authorities claim that the technical configuration of the smart contract on the blockchain further indicates that the return was not the intended outcome. “This may suggest a tactic known as rug pull,” the FIOD continued.
According to the statement, the suspect’s imprisonment was prolonged by two weeks after he was questioned by a court on Thursday.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
