Netherlands officials have taken into custody an individual suspected of orchestrating fraud, embezzlement and money laundering activities associated with the gaming platform ZKasino.
According to a statement from the Fiscal Information and Investigation Service (FIOD), the detained individual, whose identity has not been disclosed, will be held for questioning for 14 days in the Netherlands as part of ongoing investigations.
The FIOD revealed that the suspect is believed to be connected to a large-scale scam involving the rug pull of the ZKasino project, prompted by numerous complaints.
The investigation was initiated on April 25 and has involved close collaboration between the FIOD, the Financial Crimes Authority and the Binance crypto exchange team.
During the arrest, authorities seized digital assets, real estate properties and a luxury vehicle valued at $12.2 million.
The FIOD has not ruled out the possibility of additional arrests in connection with the case.
ZKasino came under suspicion of a rug pull after user funds totalling over $32 million were siphoned off to unknown wallets.
Following the incident, the project’s team abruptly shut down their Telegram group and ceased communication with users.
In response to the controversy, the MEXC crypto exchange revoked the listing of the ZKAS native token, while the Ape Terminal platform cancelled the initial DEX offering (IDO) associated with the project.
One of the purported investors, Big Brain, refuted any involvement in the funding round. Similarly, the MEXC platform asserted that it was also a victim of the fraudulent scheme.