Authorities in the Netherlands declared the arrest of a suspect in the money laundering, fraud, and embezzlement of the gaming platform ZKasino.
The man, whose name was withheld, would be detained for 14 days in the Netherlands for investigative reasons, according to a statement from the Fiscal Information and Investigation Service (FIOD).
The agency clarified that the inmate might be a part of a massive swindle connected to the ZKasino project’s rug pull. Multiple complaints prompted an inquiry into the case, starting on April 25.
According to the statement, during the investigation, FIOD collaborated closely with the teams from the Financial Crimes Authority and the Binance cryptocurrency exchange. The investigative team and prosecutor’s office identified the rug pull effort participants.
During the arrest, law authorities seized $12.2 million worth of luxury automobiles, real estate, and digital assets. In this instance, the department did not rule out making more arrests.
After user payments totaling more than $32 million were transferred to unidentified wallets, ZKasino was suspected of pulling a rug. The group on Telegram was closed, and the team no longer answered messages after that.
In response to the event, the Ape Terminal platform discontinued the IDO, and the MEXC cryptocurrency exchange canceled the listing of the ZKAS project’s native coin.
Big Brain, one of the alleged investors, subsequently refuted its involvement in the investment round. The MEXC platform responded by declaring that it was also a victim of the event.
