The arrest of a suspect in fraud, embezzlement, and money laundering related to the gaming platform ZKasino has been announced by Netherlands officials. The Fiscal Information and Investigation Service (FIOD) reported that the unnamed man will be held in custody for 14 days for investigative purposes.

The suspect is believed to be involved in a large-scale scam associated with the rug pull of the ZKasino project, following numerous complaints that sparked an investigation starting on April 25. FIOD collaborated with the Financial Crimes Authority and the crypto exchange team from Binance during the investigation process, leading to the identification of individuals involved in the rug pull project.

Law enforcement agencies seized digital assets, real estate, and a luxury car valued at $12.2 million during the arrest. Additional arrests have not been ruled out in this case.

ZKasino faced suspicions of a rug pull when user funds exceeding $32 million were transferred to unknown wallets, prompting the closure of the Telegram group and cessation of communication. As a result, the MEXC crypto exchange delisted the native token of the ZKAS project, and the Ape Terminal platform canceled the IDO.

Despite initial involvement claims, one investor named Big Brain later refuted any participation in the funding round. MEXC platform also stated that it was a victim of the incident.

In light of these events, ZKasino has introduced a DAO governance model following the allegations of a $32 million rug pull.

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