{"investigation":{"slug":"zkasino","entity_name":"ZKasino","trust_score":3,"severity_base":null,"score_modifier":0,"confidence":0.93,"status":"published","content_type":"investigation","summary":"ZKasino was a Web3 gambling platform that raised approximately $33 million from over 10,000 investors through a 'Bridge-to-Earn' campaign in early 2024, promising depositors their ETH would be returnable within 30 days. Instead, the platform converted depositor ETH into its native ZKAS tokens and staked the funds on Lido without user consent, prompting Dutch authorities (FIOD) to arrest founder Elham Nourzai in April 2024 and seize over EUR 11 million in assets. A second suspect linked to the WhiteRock token project was arrested in the UAE in July 2025 and faces extradition to the Netherlands, while partial refunds to affected depositors remained incomplete as of late 2025.","sections":[{"content":"Beginning March 17, 2024, ZKasino launched a 'Bridge-to-Earn' program inviting users to deposit Ethereum onto its Layer 2 chain built on zkSync, with explicit promises that depositors could withdraw their principal at any time and that funds would be returned within 30 days. On-chain data later analyzed by TRM Labs recorded 11,400+ deposits from 8,815 wallets totaling over $36.5 million by the time of launch. On April 18, 2024, ZKasino quietly removed the bridge-back guarantee from its user interface. On April 20, 2024, the platform announced it would convert all deposited ETH into vested ZKAS tokens rather than returning funds, effectively locking depositor capital without consent. The official ZKasino Telegram group was subsequently shut down, cutting off investor communications.","heading":"The Bridge-to-Earn Scheme","sources":[{"url":"https://www.theblock.co/post/289996/zkasino-launch-leads-to-widespread-outrage-as-33-million-promised-to-investors-is-sent-to-lido","name":"theblock.co","type":"other","credibility":3},{"url":"https://www.trmlabs.com/resources/blog/11-million-euros-seized-as-fiod-arrest-man-on-suspected-casino-exit-scam","name":"trmlabs.com","type":"other","credibility":3},{"url":"https://beincrypto.com/zkasino-crypto-betting-platform-rug-pull/","name":"beincrypto.com","type":"other","credibility":3},{"url":"https://www.dlnews.com/articles/defi/police-arrest-linked-to-zkasino-crypto-scam-may-mean-justice/","name":"dlnews.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Following the April 20 announcement, blockchain analysis confirmed that ZKasino transferred the bridged ETH to Lido, an Ethereum liquid staking protocol, converting depositor funds into Lido Wrapped Staked Ether (wstETH). This meant ZKasino, not depositors, was earning staking rewards on the locked capital. The funds moved through a decentralized platform between April 20 and April 29, 2024, then transferred to three separate addresses before being partially returned to origin addresses following the suspect's arrest on May 9, 2024, according to on-chain analysis by TRM Labs. Ethereum co-founder Vitalik Buterin publicly criticized ZKasino, stating its use of the 'ZK' branding was misleading and had no technical basis beyond deployment on zkSync.","heading":"Staking of Depositor Funds on Lido","sources":[{"url":"https://www.trmlabs.com/resources/blog/11-million-euros-seized-as-fiod-arrest-man-on-suspected-casino-exit-scam","name":"trmlabs.com","type":"other","credibility":3},{"url":"https://www.theblock.co/post/289996/zkasino-launch-leads-to-widespread-outrage-as-33-million-promised-to-investors-is-sent-to-lido","name":"theblock.co","type":"other","credibility":3},{"url":"https://cryptoslate.com/zkasino-scammers-risky-ethereum-trade-backfires-with-27m-loss-amid-market-turmoil/","name":"cryptoslate.com","type":"other","credibility":3}],"severity":"medium"},{"content":"On April 29, 2024, the Netherlands' Fiscal Information and Investigation Service (FIOD) arrested Elham Nourzai, a 26-year-old Dutch national known online as 'Derivatives Monke,' on suspicion of fraud, embezzlement, and money laundering in connection with the ZKasino scheme. Dutch authorities seized assets valued at approximately EUR 11.4 million (roughly $12.2 million USD), including real estate, luxury vehicles, and cryptocurrencies. FIOD stated that communications between suspects revealed 'there was never any intention to return the invested funds.' On March 6, 2025, Interpol issued a Red Notice for a second suspect. On July 3, 2025, UAE authorities arrested a 21-year-old Norwegian national, identified in related reporting as Ildar Ilham — the alleged founder of WhiteRock Finance — in connection with the same investigation. The Netherlands submitted a formal extradition request; an extradition treaty between the Netherlands and the UAE has been in force since August 1, 2023.","heading":"Arrests and Criminal Charges","sources":[{"url":"https://www.prosecutionservice.nl/latest/news/2025/07/03/arrest-in-the-uae-in-criminal-case-involving-gambling-platform-zkasino","name":"prosecutionservice.nl","type":"other","credibility":3},{"url":"https://www.trmlabs.com/resources/blog/11-million-euros-seized-as-fiod-arrest-man-on-suspected-casino-exit-scam","name":"trmlabs.com","type":"other","credibility":3},{"url":"https://nltimes.nl/2024/05/03/dutch-authorities-arrest-man-scamming-people-millions-crypto-zkasino","name":"nltimes.nl","type":"other","credibility":3},{"url":"https://cryptobriefing.com/zkasino-scam-arrest-news/","name":"cryptobriefing.com","type":"other","credibility":3},{"url":"https://www.dlnews.com/articles/defi/police-arrest-linked-to-zkasino-crypto-scam-may-mean-justice/","name":"dlnews.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Blockchain investigator ZachXBT published findings alleging that WhiteRock Finance, a real-world asset (RWA) token platform, was used to launder proceeds from the ZKasino exit scam. ZachXBT's on-chain analysis identified direct fund transfers from wallets holding ZKasino presale capital to WhiteRock's marketing wallet, which were then allegedly used to pay influencers to promote the project. A personal email tied to WhiteRock's smart contract deployer was cross-referenced and found linked to a Chess.com account under the alias 'IldarTheGrandMaster,' which ZachXBT connected to Ildar Ilham, a figure also identified in connection with ZKasino. The laundering methodology allegedly involved chain-hopping across zkSync, Starknet, EVM-compatible chains, and Solana; converting proceeds to Monero through instant exchanges; cashing out via over-the-counter brokers; and trading on perpetual platforms including Hyperliquid. Following ZachXBT's report, the WHITE token associated with WhiteRock declined approximately 40% in value. These allegations remain subject to ongoing criminal proceedings.","heading":"WhiteRock Connection and Money Laundering Allegations","sources":[{"url":"https://cryptonews.com/news/zachxbt-exposes-whiterock-token-as-potential-33m-zkasino-money-laundering-scheme/","name":"cryptonews.com","type":"other","credibility":3},{"url":"https://www.cryptopolitan.com/zachxbt-links-white-rock-to-zkasino-scam/","name":"cryptopolitan.com","type":"other","credibility":3},{"url":"https://cointelegraph.com/news/whiterock-founder-extraditon-netherlands-zkasino","name":"cointelegraph.com","type":"other","credibility":3},{"url":"https://thedefiant.io/news/regulation/whiterock-founder-linked-to-usd30-million-zkasino-scam-arrested-in-uae","name":"thedefiant.io","type":"other","credibility":3}],"severity":"medium"},{"content":"On April 4, 2024, ZigZag Exchange publicly accused ZKasino of fraud, alleging that ZKasino founders had diverted funds intended for ZigZag's development and misled investors about funding sources. Allegations included the misappropriation of approximately $15 million from ZigZag's treasury. These accusations preceded the broader disclosure of the bridge-to-earn fund lock by approximately two weeks and provided early warning signals to the market. ZKasino dismissed the allegations as fear, uncertainty, and doubt (FUD) at the time.","heading":"Connection to ZigZag Exchange","sources":[{"url":"https://www.dlnews.com/articles/defi/police-arrest-linked-to-zkasino-crypto-scam-may-mean-justice/","name":"dlnews.com","type":"other","credibility":3},{"url":"https://coinedition.com/zkasino-under-fire-rug-pull-allegations-and-investor-concerns/","name":"coinedition.com","type":"other","credibility":3}],"severity":"medium"},{"content":"Following the April 20 incident, multiple crypto platforms distanced themselves from ZKasino. Crypto exchange MEXC, which had backed ZKasino as part of a $26 million Series A investment round at a stated $350 million valuation, cancelled its planned listing of the ZKAS token. Token launchpads Ape Terminal and AIT Launchpad each cancelled their scheduled ZKasino IDOs (initial DEX offerings). The $350 million valuation announcement, made on March 19, 2024, and cited MEXC participation, was later viewed by investigators and commentators as part of a coordinated effort to legitimize the scheme ahead of the fund lock.","heading":"Exchange and Launchpad Cancellations","sources":[{"url":"https://www.theblock.co/post/289996/zkasino-launch-leads-to-widespread-outrage-as-33-million-promised-to-investors-is-sent-to-lido","name":"theblock.co","type":"other","credibility":3},{"url":"https://beincrypto.com/zkasino-crypto-betting-platform-rug-pull/","name":"beincrypto.com","type":"other","credibility":3},{"url":"https://coinedition.com/zkasino-under-fire-rug-pull-allegations-and-investor-concerns/","name":"coinedition.com","type":"other","credibility":3}],"severity":"medium"},{"content":"After Nourzai's release from initial custody in late 2024, a wallet associated with the ZKasino scam opened a highly leveraged long position on ETH using funds from the stolen pool. The position, reportedly leveraged at 20x, was subsequently liquidated resulting in an estimated loss of approximately $27.1 million. This event was reported by CoinTelegraph and The Defiant and constituted a significant destruction of the remaining stolen capital. DL News reported that ZKasino's year-long silence on investor refunds ended in the context of this liquidation event.","heading":"Liquidation of Leveraged ETH Position","sources":[{"url":"https://cointelegraph.com/news/zkasino-scammer-loses-27m-in-liquidation","name":"cointelegraph.com","type":"other","credibility":3},{"url":"https://thedefiant.io/news/defi/zkasino-scammer-loses-usd27-1-million-after-20x-eth-long-liquidated","name":"thedefiant.io","type":"other","credibility":3},{"url":"https://cryptoslate.com/zkasino-scammers-risky-ethereum-trade-backfires-with-27m-loss-amid-market-turmoil/","name":"cryptoslate.com","type":"other","credibility":3},{"url":"https://www.dlnews.com/articles/defi/crypto-gambling-app-zkasino-liquidated/","name":"dlnews.com","type":"other","credibility":3}],"severity":"medium"},{"content":"In November 2025, Derivatives Monke announced via a post on X that approximately 35% of withdrawal requests had been processed, covering roughly 2,500 of the estimated 8,000 affected addresses. A second wave of repayments was described as imminent, with the stated goal of bringing total refunded users to approximately 75% of affected addresses. Victims who had deposited smaller amounts reported receiving refunds, while larger depositors faced additional requirements including KYC verification for legal compliance reasons. Refunded amounts were described as not necessarily final, with possible interest adjustments pending. As of late 2025, the full refund of all affected depositors had not been confirmed, and criminal proceedings in the Netherlands remained active.","heading":"Partial Refunds and Ongoing Investor Recovery","sources":[{"url":"https://cryptopotato.com/zkasino-begins-partial-eth-refunds-after-33m-scam/","name":"cryptopotato.com","type":"other","credibility":3},{"url":"https://crypto-economy.com/zkasino-initiates-eth-refunds-following-33m-scam-controversy/","name":"crypto-economy.com","type":"other","credibility":3},{"url":"https://www.cryptopolitan.com/zkasino-users-wait-months-for-refund/","name":"cryptopolitan.com","type":"other","credibility":3}],"severity":"medium"}],"timeline":[{"date":"2024-03-17","event":"ZKasino launches Bridge-to-Earn program, inviting users to deposit ETH with promises of full redemption within 30 days.","source":""},{"date":"2024-03-19","event":"ZKasino announces Series A funding at a $350 million valuation, citing MEXC as a backer.","source":""},{"date":"2024-04-04","event":"ZigZag Exchange publicly accuses ZKasino of fraud and misappropriation of approximately $15 million from ZigZag's treasury.","source":""},{"date":"2024-04-18","event":"ZKasino removes the bridge-back guarantee from its user interface without announcement.","source":""},{"date":"2024-04-20","event":"ZKasino announces conversion of all deposited ETH to vested ZKAS tokens; official Telegram group is shut down. Over 10,515 ETH ($33M) is staked on Lido.","source":""},{"date":"2024-04-29","event":"FIOD arrests Elham Nourzai (alias Derivatives Monke), 26, in the Netherlands on charges of fraud, embezzlement, and money laundering. EUR 11.4 million in assets seized.","source":""},{"date":"2024-05-09","event":"On-chain data shows ZKasino-linked funds returned to origin addresses following suspect's arrest, per TRM Labs analysis.","source":""},{"date":"2025-03-06","event":"Interpol issues Red Notice for a second ZKasino suspect.","source":""},{"date":"2025-07-03","event":"UAE authorities arrest a 21-year-old Norwegian national (identified in related reporting as WhiteRock founder Ildar Ilham) in connection with the ZKasino investigation. Netherlands submits extradition request.","source":""},{"date":"2025-11-10","event":"Derivatives Monke announces via X that approximately 35% of withdrawal requests have been processed, covering ~2,500 of 8,000 affected addresses.","source":""}],"sources_used":[{"url":"https://www.theblock.co/post/289996/zkasino-launch-leads-to-widespread-outrage-as-33-million-promised-to-investors-is-sent-to-lido","name":"theblock.co","type":"other","credibility":3},{"url":"https://www.trmlabs.com/resources/blog/11-million-euros-seized-as-fiod-arrest-man-on-suspected-casino-exit-scam","name":"trmlabs.com","type":"other","credibility":3},{"url":"https://beincrypto.com/zkasino-crypto-betting-platform-rug-pull/","name":"beincrypto.com","type":"other","credibility":3},{"url":"https://www.dlnews.com/articles/defi/police-arrest-linked-to-zkasino-crypto-scam-may-mean-justice/","name":"dlnews.com","type":"other","credibility":3},{"url":"https://cryptoslate.com/zkasino-scammers-risky-ethereum-trade-backfires-with-27m-loss-amid-market-turmoil/","name":"cryptoslate.com","type":"other","credibility":3},{"url":"https://www.prosecutionservice.nl/latest/news/2025/07/03/arrest-in-the-uae-in-criminal-case-involving-gambling-platform-zkasino","name":"prosecutionservice.nl","type":"other","credibility":3},{"url":"https://nltimes.nl/2024/05/03/dutch-authorities-arrest-man-scamming-people-millions-crypto-zkasino","name":"nltimes.nl","type":"other","credibility":3},{"url":"https://cryptobriefing.com/zkasino-scam-arrest-news/","name":"cryptobriefing.com","type":"other","credibility":3},{"url":"https://cryptonews.com/news/zachxbt-exposes-whiterock-token-as-potential-33m-zkasino-money-laundering-scheme/","name":"cryptonews.com","type":"other","credibility":3},{"url":"https://www.cryptopolitan.com/zachxbt-links-white-rock-to-zkasino-scam/","name":"cryptopolitan.com","type":"other","credibility":3},{"url":"https://cointelegraph.com/news/whiterock-founder-extraditon-netherlands-zkasino","name":"cointelegraph.com","type":"other","credibility":3},{"url":"https://thedefiant.io/news/regulation/whiterock-founder-linked-to-usd30-million-zkasino-scam-arrested-in-uae","name":"thedefiant.io","type":"other","credibility":3},{"url":"https://coinedition.com/zkasino-under-fire-rug-pull-allegations-and-investor-concerns/","name":"coinedition.com","type":"other","credibility":3},{"url":"https://cointelegraph.com/news/zkasino-scammer-loses-27m-in-liquidation","name":"cointelegraph.com","type":"other","credibility":3},{"url":"https://thedefiant.io/news/defi/zkasino-scammer-loses-usd27-1-million-after-20x-eth-long-liquidated","name":"thedefiant.io","type":"other","credibility":3},{"url":"https://www.dlnews.com/articles/defi/crypto-gambling-app-zkasino-liquidated/","name":"dlnews.com","type":"other","credibility":3},{"url":"https://cryptopotato.com/zkasino-begins-partial-eth-refunds-after-33m-scam/","name":"cryptopotato.com","type":"other","credibility":3},{"url":"https://crypto-economy.com/zkasino-initiates-eth-refunds-following-33m-scam-controversy/","name":"crypto-economy.com","type":"other","credibility":3},{"url":"https://www.cryptopolitan.com/zkasino-users-wait-months-for-refund/","name":"cryptopolitan.com","type":"other","credibility":3}],"source_tags":[],"addresses":[],"reviewed":false,"reviewed_by":null,"model_used":"claude-sonnet-4-6","created_at":"2026-05-30T18:25:51.821514+00:00","updated_at":"2026-08-29T01:33:48.822+00:00"}}