The Dutch Anti-Fraud Agency Cracks Down on Crypto Fraud
If you’ve been following the crypto news, you might have heard about the recent crackdown on crypto fraud by the Dutch anti-fraud agency FIOD.
Dutch Agency Investigates ZKasino Rug Pull
The FIOD launched an investigation on April 25 following alerts from X (formerly Twitter) and intelligence from their departments. The focus was on a significant rug pull involving the gambling platform ZKasino, where over $32 million was invested by global victims.
- Investors were promised a return within 30 days, but it never materialized.
- The smart contract was set up in a way that suggested no intention of providing the promised return.
Authorities conducted searches and seized digital data carriers during the operation. Confiscated assets included real estate worth over €11.4 million, a luxury car, and various cryptocurrencies.
The suspect was presented before a magistrate, and their detention was extended for further investigation. FIOD collaborated with Binance’s Financial Crime Compliance and Investigations Team to secure millions in cryptocurrencies, highlighting the partnership between law enforcement and crypto platforms against financial crimes.
Criticism from Industry Experts
The allegations against ZKasino drew criticism from industry experts, including Ethereum co-founder Vitalik Buterin. He criticized the platform for its fraudulent use of zero-knowledge proofs, noting that scammers exploit emerging technologies as buzzwords.
- Ethereum co-founder Vitalik Buterin expressed his criticism of ZKasino’s fraudulent misuse of zero-knowledge proofs.
- Buterin highlighted how scammers exploit emerging technologies as buzzwords to deceive investors.
ZKasino also faced accusations from ZigZag Exchange, alleging that developers diverted funds for personal use. The crypto community’s growing complaints brought these issues to the forefront, exposing false funding claims by ZKasino and the failure to compensate developers and contractors.
Response from the Cryptocurrency Market
Following the controversy, major players in the crypto market took action. MEXC exchange canceled ZKasino’s token listing to protect users’ rights. Ape Terminal also canceled its Initial DEX Offering linked to ZKasino, ensuring refunds for all participants.
- MEXC exchange canceled ZKasino’s token listing to safeguard user interests.
- Ape Terminal canceled its Initial DEX Offering associated with ZKasino and promised refunds to all participants.
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