Dark Secrets of ZKasino: How Binance Uncovered the Fraud?

Binance Supports Investigation of Suspected Fraud Related to ZKasino

Binance, one of the largest and most reputable cryptocurrency exchanges in the world, played a crucial role in the arrest of a suspect involved in fraud linked to the ZKasino platform. The whole case has caused a stir in the cryptocurrency community, and the actions taken by the Binance team have been very positively received by investors.

Commencement of the Investigation

The Binance Legal and Investigation team took on the case in response to numerous community complaints regarding the suspected fraudulent gambling platform ZKasino. Researchers utilized state-of-the-art technologies, including on-chain tracing and open-source intelligence (OSINT), to track down the fraudster.

Arrest of the Suspect

After identifying the suspect using smart contracts, Binance immediately informed the relevant law enforcement authorities about the person responsible for the fraud. The Dutch Financial Intelligence and Investigation Service arrested a 26-year-old on April 29 and also confiscated digital assets, real estate, and a luxury car worth $12.2 million.

Extent of the Fraud

This is the first arrest related to the ZKasino fraud, in which investors lost at least $33 million in digital assets. Binance froze millions of dollars in stolen cryptocurrencies after receiving a court order against the perpetrator’s accounts.

Rug Pull and Further Actions

The ZKasino incident was deemed a „rug pull,” which involved the personal withdrawal of funds, leading to fraud on a massive scale. In response, the cryptocurrency exchange MEXC delisted the ZKAS token, and the Ape Terminal platform canceled the initial coin offering.

Collaboration with Law Enforcement Agencies

The Binance investigation team is actively collaborating with Dutch authorities in analyzing on-chain data, identifying fund flows, and detecting fraudulent activities related to ZKasino’s smart contracts. Despite the suspect’s arrest, funds continue to flow on the blockchain, suggesting the potential involvement of more individuals in the fraud.

Summary

The Binance investigation team, along with the community, play a crucial role in exposing cryptocurrency frauds and restoring investors’ trust. Further actions are planned to facilitate the return of stolen funds and potentially arrest more individuals associated with the ZKasino fraud.