Binance Analyst Team Key in Catching ZKasino Fraud Scheme Organizer
Binance’s cryptocurrency exchange analyst team played a key role in catching one of the organizers of the fraudulent scheme ZKasino. This scheme attracted over 10,000 investors, who invested more than 10,515 ETH, but the project creators then absconded with the funds and shut it down. As a result of the swift police action in the Netherlands, a 26-year-old suspect was arrested, and his assets totaling over 11 million euros were confiscated.
Investigation and Arrest
Binance researchers used a combination of on-chain analysis and open-source intelligence (OSINT) methods to investigate the case. They delved into the ZKasino social networks and smart contracts to identify behavioral patterns and determine who was behind creating the contracts and signing the transactions. This allowed them to identify the project’s contract controller and pass on the information to law enforcement agencies.
On April 29, 2024, the suspect was arrested on charges of fraud, embezzlement, and money laundering. The police also placed a freeze on his cash, cryptocurrency, real estate, and luxury car totaling 11.4 million euros. The man is currently in custody awaiting trial.
ZKasino Fraud Scheme
ZKasino project was positioned as a gaming blockchain platform promising investment returns within 30 days. However, an analysis of the smart contracts revealed that the ability to withdraw funds was only on paper. This is a typical scam scheme in the cryptocurrency space known as Rug Pull.
Recovery of Stolen Funds
Furthermore, Binance successfully froze cryptocurrency worth millions of dollars, thanks to an order to freeze the perpetrator’s accounts. Binance’s Investigations Department will continue to collaborate with authorities to return the stolen funds to investors.
Earlier, Binance founder and former CEO Changpeng Zhao was sentenced to four months in prison in the US for violating anti-money laundering regulations.
