$30 Million ZKasino Fraud: UAE Arrests WhiteRock Founder
Key Takeaways
- Ildar Ilham, founder of WhiteRock Finance, arrested in UAE for alleged involvement in $30 million ZKasino fraud
- The case emerged after ZKasino promised token airdrops but failed to return investor funds
- Following the arrest news, WhiteRock’s WHITE token crashed hard, dropping over 40%.
- Extradition proceedings to Netherlands are underway
UAE Authorities have arrested Ildar Ilham, founder of decentralized finance protocol WhiteRock Finance, on charges related to an alleged $30 million fraud through the ZKasino project.
According to reports from crypto detective ZachXBT,lham’s arrest is part of a bigger investigation into “widespread fraud” around ZKasino. Specifically, the report suggests WhiteRock was involved in ZKasino’s $30 million fundraising efforts.
Details of the ZKasino Fraud
The alleged investor fraud occurred after ZKasino launched in April 2024. The platform had promised to airdrop its native token to selected users. Over a year has passed, and investors continue to await the promised airdrop of the platform’s native token.
In April 2024, Dutch authorities arrested a 26-year-old man – believed to be crypto figure Elham Nourza. He was charged with fraud, embezzlement, and money laundering related to the ZKasino scam.
According to ZachXBT, Ilham’s arrest is directly related to the investigation against Nourzai and ZKasino. Extradition procedures to transfer him to the Netherlands are currently underway.
Market Impact
Following reports of Ilham’s arrest, WhiteRock’s native token WHITE plummeted over 40%, falling from $0.0006582 to $0.0003909.
This case is considered as one of the latest frauds targeting the cryptocurrency user community. As a result, authorities globally are stepping up efforts to track down and prosecute these kinds of scams in the digital asset space.
Meanwhile, US authorities recently reported they managed to recover about $40,000 out of more than $250,000 stolen from someone who donated to a fraudulent inauguration committee. It highlights the ongoing push to tackle crypto fraud.
