Binance, one of the leading global cryptocurrency exchanges, recently played a crucial role in assisting law enforcement in the arrest of a suspect involved in the ZKasino scam. The community outrage prompted Binance’s Crime Compliance and Investigations team to look into the fraudulent gambling platform.

The team utilized on-chain tracking and open-source intelligence information to track down the attacker behind the ZKasino scam. By analyzing the smart contracts and behavioral patterns, Binance was able to identify the suspect and notify law enforcement authorities.

As a result of Binance’s efforts, the Fiscal Information and Investigation Service was able to recover over €11.4 million in stolen funds from the ZKasino exit scam. This is part of Binance’s ongoing commitment to assisting authorities in combating fraudulent activities within the cryptocurrency space.

The suspect behind the ZKasino smart contracts was arrested by the FIOD on April 29, and assets worth $12.2 million, including digital assets, real estate, and a luxury car, were seized. This arrest marks the first significant development in the ZKasino fraud case, where investors lost millions in digital assets.

ZKasino, a purported gambling platform and blockchain casino, deceived investors into believing they would receive their investments back within 30 days. However, Dutch authorities suspect that the smart contract was designed to prevent funds from being returned to investors.

Binance also froze millions of dollars in cryptocurrency stolen through the ZKasino rug pull after law enforcement obtained a warrant against the attacker’s accounts. The Binance investigations team has been working closely with Dutch authorities to trace the flow of funds and unravel the complexities of the fraudulent smart contracts.

Following the ZKasino incident, other platforms and organizations have taken action. The MEXC crypto exchange canceled the listing of the ZKAS token, and the Ape Terminal platform scrapped the initial coin offering associated with the project. VC firm Big Brain Holdings distanced itself from ZKasino, emphasizing that it had no direct investments in the crypto casino.

Despite the arrest of the primary suspect, funds related to the ZKasino scam continue to move on-chain, indicating potential involvement of multiple attackers. Binance’s Investigations team remains committed to working with authorities to ensure that stolen funds are returned to investors.

In a separate incident, Binance assisted Indian authorities in disrupting a fraudulent investment scheme masquerading as a gaming platform, leading to the recovery of millions of dollars in assets. These efforts underscore Binance’s dedication to promoting transparency and security within the cryptocurrency industry.

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