As a crypto investor with several years of experience in this space, I’m always on the lookout for any developments that could potentially impact my investments. The recent arrest of the Zkasino scam suspect by Dutch authorities, with the help of Binance’s investigations team, is a welcome development in the ongoing fight against cryptocurrency fraud.
As a member of Binance‘s On-Chain Investigations team, I had the privilege of contributing significantly to the recent law enforcement operation that resulted in the arrest of the individuals behind the Zkasino scam. By leveraging the power of blockchain analysis, we were able to provide crucial intelligence and insights that facilitated the successful apprehension of these criminals.
The FCC and Investigations team at Binance were moved to investigate a suspect gambling platform following public uproar about its alleged fraudulent activities.
As a researcher on the Binance Investigations Team, I can share that we employed a multifaceted approach to trace the elusive attacker. By merging the power of on-chain analysis with open-source intelligence data (OSINT), we were able to uncover crucial information and ultimately identify the perpetrator.
“We’ve looked into all the smart contracts for ZKasino, in a type of behavioral network study, to find out who was behind the contract, but also who were the signers behind those addresses.”
Upon discovering the individual responsible for the smart contract breaches, Binance notified the relevant law enforcement agencies about the identity of the account owner involved in the fraudulent activity.
The Fiscal Information and Investigation Service (FIOD) made an arrest on April 29 of a 26-year-old suspect. During the raid, FIOD confiscated assets valued over 11.4 million euros ($12.2 million), including crypto, real estate, and luxury cars, as reported on May 3 by FIOD.
In the initial arrest related to the ZKasino scam, Dutch authorities revealed that over $33 million in digital assets were swindled from investors. Contrary to their original promise of refunding the investments within a month, the platform allegedly used a deceptive smart contract to avoid returning the funds.
Law enforcement’s warrant allowed Binance to freeze substantial cryptocurrency funds, estimated at millions of dollars, that had been stolen during the ZKasino rug pull incident. According to Binance’s investigation team, this action was taken against the suspect’s accounts.
Together with law enforcement, we located the account of one of the suspects. We could act on that as they sent us a seizure warrant… so that way they were able to recover funds. But the main part of this ZKasino case is still at large.
The Binance investigations team has continued to support Dutch law enforcement in their probe by providing on-chain analysis. This process has aided in tracing the movement of funds and uncovering details about how the deceitful ZKasino smart contracts were designed.
As a crypto investor, I’ve unfortunately come across instances of deceitful projects. One such example is the Zkasino rug pull, where over $35 million in Ethereum (ETH) was taken from around 10,000 investors, including myself. The project’s smart contract deployer began surreptitiously draining user funds before the exit scam became publicly known.
Crypto community played an important role in ZKasino arrest
The investigation team at Binance acknowledged the crucial part played by the community in identifying and apprehending the ZKasino suspect.
Crypto enthusiasts, such as well-known crypto analyst FatMan, have raised suspicions that the individual behind the rug pull scam could be Derivatives Ape, the pseudonymous creator of ZKasino, a suspicion that was subsequently validated by Binance.
As a seasoned crypto investor, I’ve closely followed the discussions surrounding the X project. The insights shared by the suspect in past conversations have been instrumental in shedding light on the scammer within our community, based on Binance’s thorough investigation.
Some of the comments that this person made with his moniker on Twitter, retrospectively, are a bit weird… [expressing] his wish to experience jail time for one to two years just for the experience.
As a researcher investigating this case, I’ve noticed an intriguing development: despite the known arrests related to the incident, the cryptocurrency transactions on the blockchain have persisted. This observation implies the presence of additional individuals involved in the rug pull scheme.
As a crypto investor, I understand the importance of transparency and accountability when it comes to fund security. I want to assure you all that Binance’s diligent Investigations team remains committed to working hand in hand with relevant authorities to swiftly recover any stolen funds. Our top priority is to safeguard our investors’ assets and restore peace of mind within our community.
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2024-05-08 14:13