Here's how it all started
So, over 10,000 users put in around $33 million in ether to get ZKAS, which is the token for ZKasino. They first claimed they would return the ether, but then ZKasino switched it to ZKAS instead. Blockchain records show that this ether actually ended up at Lido.
Then, on April 29th, a 26-year-old dude got arrested by the FIOD. They're looking into him for fraud, stealing, and money laundering tied to this big scam involving ZKasino. Apparently, victims from all over the globe have invested over $30 million in crypto on this platform.
If you're thinking about staking or running your own nodes, you should check out some reliable stats.
It is disheartening to see people being defrauded because they trusted an organization. These people believed that they were investing in the right platform only to discover that they were dealing with fraudsters. Just like other criminals they decide to spend the money on luxury. This is a wake-up call for investors to do in-depth research on any project they intend to invest in.
The Fiscal Information and Investigation Service which is the agency responsible for financial crimes in the Netherlands has told anyone who has lost money from ZKAS to contact them. Hopefully, the recovered funds and assets would go a long way in paying back what customers have lost. And these fraudsters would be found guilty and receive fair sanctions.
Investors trusted the organization and they backstab and now Karma plays its part. This is how these scammers should be dealt with and good job by Dutch police. I hope all 10,000 investors get their initial investment back it will take time for sure but I am certain that they will get their invested ETH back. I am not sure but why would a gambling startup think scamming can be more profitable than gambling?
The thing with crime is that as long as you are involved in it, the law will definitely catch up to you. Crime doesn't pay. Those who get rich off defrauding other people and through other illegal means such as money laundering will only enjoy their wealth temporary. The law is the law and it's punishes those that fail to abide by it. Example - Sam Bankman-Fried.
Remind me how many years customers of the Mt.Gox exchange have been waiting for a refund?
If it was a smart contract, many customers will have big problems proving ownership of coins, and many customers will prefer not to go to the police to avoid unnecessary questions.
Such assets mostly remain in the country's budget.