Binance Cracks ZKasino Scam, $33 Million Scheme Uncovered

Key Points:

• Binance identified the fraudster behind the ZKasino scam, which resulted in a $33 million loss.
• The fraudulent platform attracted funds from over 10,000 investors with false return promises.
• After Binance’s alert, law enforcement arrested a 26-year-old suspect and seized over $12.2 million in assets.

According to Cointelegraph, Binance cracks ZKasino scam, identifying a fraudster responsible for a $33m loss. Using on-chain tracking and OSINT methods, the suspect was arrested, and $12.2m worth assets seized.

Binance spearheaded a crucial breakthrough in the ZKasino scam investigation, successfully identifying the fraudster responsible for the loss of $33 million in digital assets from investors.

Binance Cracks ZKasino Case: Investigation Techniques and Scam Details Uncovered

The investigations team used a mix of on-chain tracking and open-source intelligence (OSINT) methods to find the culprit.

The scam involved a fraudulent gambling platform, ZKasino, which gained widespread attention due to community outrage.

The scheme attracted over 10,515 Ether from more than 10,000 investors, promising a return on their investments within 30 days. However, the platform’s smart contract suggested no intention to return the funds.

Readmore: FSOCIETY Threatens Massive Bitfinex Data Leak: 400,000 Users At Risk

Binance’s Identification of Culprit Leads to Arrest

Binance’s investigations team analyzed all smart contracts for ZKasino, identifying the signers behind the addresses.

After identifying the culprit, Binance alerted law enforcement, leading to the arrest of a 26-year-old suspect on April 29. The Fiscal Information and Investigation Service (FIOD) seized over 11.4 million euros ($12.2 million) worth of crypto, real estate, and luxury cars from the suspect.

Previously, MEXC delisted the ZKAS token from the ZKasino project amidst fraud accusations. The decision followed ZKasino’s win on MEXC Kickstarter. ZachXBT, who had warned about the project, highlighted scandals about ZKasino.