Binance Exchange Helps Arrest ZKasino Fraud Suspect

Binance's crime investigation team actively assisted in the arrest of an individual suspected of involvement in the ZKasino blockchain casino scam. Although the main suspect was arrested, some of the stolen funds continued to move, indicating the possible presence of other individuals involved.

The investigations team at Binance, the world's largest cryptocurrency exchange, was instrumental in bringing the attention of law enforcement to the arrest of a person suspected of scamming ZKasino.

Sharing public outrage, Binance's compliance and crime investigation team began investigating this fraudulent gaming platform.

The researchers used a combination of blockchain tracking and open source intelligence (OSINT) techniques to find the attacker. Our company uses these methods, along with others, to investigate crypto crimes and assist in the return of stolen funds. The Binance Investigation Team provided an exclusive statement to Cointelegraph about its actions.
“We examined all the smart contracts for ZKasino as part of our behavioral network research to find out who is behind the contract, as well as who signs these addresses.”
After Binance identified the owner of the smart contracts, they informed law enforcement about the suspect who committed the fraud. This information helped the Financial Intelligence and Investigation Service (FIOD) arrest the 26-year-old suspect on April 29. The seizure resulted in the seizure of cryptocurrencies, real estate and luxury cars totaling over 11.4 million euros (approximately $12.2 million), according to a May 3 FIOD report.

The arrest is the first in the ZKasino blockchain casino fraud case, which cost investors at least $33 million worth of digital assets. Initially, the platform promised to return invested funds to users within 30 days. However, according to Dutch authorities, analysis of the smart contract showed that the platform likely never intended to fulfill its money-back promises.

Binance successfully blocked several million dollars worth of cryptocurrency that was stolen through a vulnerability in the ZKasino system. This became possible after law enforcement agencies provided appropriate court warrants to seize the criminals’ accounts. The Binance investigation team confirmed this information:
“Together with law enforcement agencies, we discovered the account of one of the suspects. We were able to act because they sent us an arrest warrant... so they were able to recover the funds. But the main defendant in this case, ZKasino, is still at large.”
Zkasino's Rug pull, also known as a withdrawal scam, attracted at least 10,515 EETH from over 10,000 investors before the smart contract deployment system began quietly siphoning user funds.
And we at AML Crypto remind you that we wrote in this article how to recognize a fraudulent crypto project. And check your crypto wallet for purity, perform AML address verification, track a transaction - you can do this and more in our Btrace solution. Free AML wallet verification for every new user.
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