Binance’s On-Chain Investigators Lead Arrest in ZKasino Scam
Crypto News– In a significant breakthrough, Binance’s on-chain investigations team, pivotal in combating cryptocurrency fraud, spearheaded the apprehension of a suspect involved in the ZKasino scam.
The investigation was sparked by widespread community outcry, prompting Binance’s Crime Compliance and Investigations unit to delve into the illicit activities of the fraudulent gambling platform.
Employing a blend of on-chain tracking and open-source intelligence methods, researchers meticulously traced the perpetrator behind the malicious smart contracts. Speaking exclusively to Cointelegraph, the Binance investigations team disclosed:
We conducted a comprehensive analysis of ZKasino’s smart contracts, employing behavioral network studies to pinpoint the creators of the contracts and the signers associated with the addresses.
With the suspect’s identity unraveled, Binance promptly collaborated with law enforcement agencies, facilitating the arrest of the 26-year-old perpetrator on April 29. The Fiscal Information and Investigation Service (FIOD) seized assets totaling over 11.4 million euros ($12.2 million), including cryptocurrencies, real estate, and luxury vehicles, as reported on May 3 by the FIOD.
This breakthrough marks the inaugural arrest in the ZKasino fraud case, where investors incurred losses exceeding $33 million in digital assets. Initial promises of a 30-day refund from the platform were debunked by Dutch authorities, who revealed that the smart contract never intended to reimburse investors.
Continuing their cooperation with Dutch authorities, Binance’s investigations unit assists in unraveling the intricate web of fund flows and unraveling the intricacies of the nefarious ZKasino smart contracts.
The ZKasino rug pull, synonymous with an exit scam, duped over 10,000 investors, resulting in the loss of at least 10,515 Ether (ETH), valued at approximately $2,987 per token, before the malefactor quietly absconded with user funds.
ZKasino Arrest: Crypto Community’s Vital Role
Binance’s investigation team highlighted the pivotal contribution of the community in apprehending the suspect associated with ZKasino. This collaboration led to the unmasking of the individual’s identity.
Prominent figures within the crypto sphere, such as the esteemed analyst FatMan, had already raised suspicions regarding the identity of the perpetrator, speculating that it might be the pseudonymous ZKasino developer known as Derivatives Ape. This speculation was substantiated when Binance confirmed the connection to Cointelegraph.
Despite the arrest, the movement of funds on-chain persisted, indicating the involvement of multiple perpetrators in the rug pull scheme.
FAQs
What was Binance’s involvement in the arrest of the ZKasino scam suspect?
Binance played a crucial role in facilitating the arrest of the ZKasino scam suspect by cooperating with law enforcement agencies and providing vital information about the suspect’s activities on their platform.
How did Binance contribute to identifying the suspect?
Binance’s investigation team closely monitored activities related to ZKasino and collaborated with the crypto community to gather information. This collaboration helped to identify suspicious transactions and behavior patterns linked to the suspect.
Did Binance confirm the suspect’s identity?
Yes, Binance confirmed the identity of the suspect involved in the ZKasino scam to Cointelegraph, providing additional credibility to the investigation and subsequent legal actions.
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