The crypto space was again thrust into controversy about two weeks ago following allegations of a rug pull involving ZKasino, a gambling platform and blockchain casino.

Investors claimed their funds had vanished overnight, sparking panic and uncertainty. Despite these troubling claims, ZKasino continued to post updates on its progress, only to vanish again, taking investors' money with it.

According to local news reports, the Dutch cyber crime police arrested a 26-year-old man suspected of masterminding the scam. They also seized properties, luxury cars, and cryptocurrency worth €11.4 million or $12.25 million. 

The arrest followed a detailed investigation on April 25, prompted by reports from the crypto community and intelligence from the FIOD's departments. Binance's Financial Crime Compliance team's cooperation was pivotal, aiding in the seizure of millions in cryptocurrencies.

A Closer Look at the Investigation

The investigation into ZKasino unveiled a complex web of fraud, embezzlement, and money laundering, leading to the suspect's arrest on April 29.

The scam came to light following accusations from ZigZag, a decentralized exchange, which alleged that ZKasino had not fulfilled its financial obligations to developers and contractors.

Further investigations revealed that Zkasino team members might have fabricated the $40 million fundraising and project valuation.

"FIOD's investigation pointed out that ZKasino's promises were never meant to be kept as the smart contract's setup suggests the fund's 'return was not intended.'"

Dutch authorities said they would continue investigating, arrest more suspects, and seize more funds shortly.