In the Netherlands, Fraudulent Blockchain Project ZKasino Uncovered
In a recent scandal, a fraudulent blockchain project called ZKasino has been exposed in the Netherlands. Marketed as a gaming platform and virtual blockchain casino, the project managed to attract approximately 10,000 users and raise 10,515 ETH, valued at around $33 million. Investors were lured in with promises of high returns on their investments within just 30 days.
The scheme involved locking up the funds for token farming of ZKAS tokens, with the intention of returning the ETH along with the project’s native tokens. However, following its launch on April 20, the developers of ZKasino unexpectedly changed the terms and converted all the ETH into ZKAS tokens. To make matters worse, these tokens are not tradable on exchanges and have been deemed to have questionable value by Dutch law enforcement.
Further investigation revealed that the project’s smart contract had been designed in a way that made it technically impossible to refund the Ether to users. Any mention of ETH refunds was conveniently removed from all official project channels, and the raised funds were moved to the Lido protocol for staking, ensuring that the profits would go directly to ZKasino, not the investors.
The Financial Intelligence Unit Netherlands (FIOD) worked alongside a task force investigating financial crimes involving the cryptocurrency exchange Binance. Following a thorough investigation, the mastermind behind ZKasino was apprehended. A search of his residence led to the seizure of digital storage devices and assets worth more than 11.4 million euros, including real estate, a luxury car, and various cryptocurrencies, all of which have been frozen. The suspect is currently in custody awaiting trial.
