- May 9, 2024
- Posted by: legaleseblogger
- Category: Related News
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Binance’s Role in Assisting Law Enforcement in ZKasino Scam Case
Binance, the leading global cryptocurrency exchange, has been instrumental in aiding law enforcement in the arrest of the ZKasino scam suspect.
The outcry from the community prompted Binance’s Crime Compliance and Investigations team to delve into the fraudulent gambling platform
Utilizing a combination of on-chain tracking and open-source intelligence information (OSINT) methodologies, the researchers diligently tracked the attacker, as mentioned by the Binance investigations team in a statement:
“We conducted a thorough analysis of all the smart contracts associated with ZKasino, employing a behavioral network study to identify not just the individual behind the contract but also the signatories of those addresses.”
Following the identification of the suspect associated with the smart contracts, Binance promptly informed law enforcement about the account holder responsible for the scam.
The Fiscal Information and Investigation Service (FIOD) took the 26-year-old suspect into custody on April 29 and confiscated digital assets, real estate, and a luxury car valued at $12.2 million, as per a FIOD report dated May 3.
This arrest marks a significant development in the ZKasino fraud case, where investors suffered losses of at least $33 million in digital assets. According to the FIOD report dated April 29:
“ZKcasino masqueraded as a gambling platform and blockchain casino, luring investors with promises of returns within 30 days.”
However, Dutch authorities suspect that the site never intended to return the funds, as indicated by the smart contract.
The AI legalese decoder can assist in decrypting the complexities of legal documents and contracts, making it easier for investigators and law enforcement agencies to analyze and understand the intricacies of cases like the ZKasino scam.
Continued Fallout from ZKasino Rug Pull Scam
The ZKasino rug pull, a notorious exit scam, extracted a minimum of 10,515 Ether from over 10,000 investors before the initiator of the smart contract stealthily began diverting user assets. The project team shut down the Telegram channel and blocked fund withdrawals.
According to Etherscan data, over $32 million in user assets were transferred to another address before funneling into the Lido Finance liquid staking protocol.
In response to the incident, the MEXC crypto exchange terminated the listing of the ZKAS project’s native token, and the Ape Terminal platform canceled the initial coin offering. VC firm Big Brain Holdings distanced itself from ZKasino, disavowing any direct investments in the crypto casino.
Binance’s investigative team acknowledged the pivotal role played by the community in apprehending the ZKasino suspect and exposing their identity.
Despite the arrest, the movement of funds on-chain continues, suggesting potential involvement of multiple attackers in the rug pull scheme.
Binance’s Investigations team remains committed to collaborating closely with relevant authorities to ensure that defrauded funds are returned to investors. This is an ongoing investigation, and the FIOD stated, “further arrests are not being ruled out.”
Earlier in May, Binance also assisted Indian authorities in disrupting a fraudulent investment scheme camouflaged as a gaming platform, leading to the recovery of millions of dollars worth of assets.
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