Binance has reported that its compliance procedures and controls played a pivotal role in the arrest of a user who allegedly used the platform for illegal activities. The Fiscal Information and Investigation Service (FIOD) in the Netherlands apprehended a 26-year-old man last month on charges of fraud, embezzlement, and money laundering.
The FIOD press release reveals that the unidentified suspect was involved in a large-scale scam linked to the gambling platform ZKasino. The fraudulent scheme reportedly swindled over $30 million in cryptocurrency from investors worldwide.
The FIOD press release further elaborates that an investigation into the scam was initiated on April 25, following reviews of reports on the X platform and information obtained by FIOD’s intelligence departments. "ZKasino presented itself as a gambling platform and blockchain casino. Investors were led to believe that they would get their investments back within 30 days. That did not happen," said the agency. The suspect was arrested on April 29, with digital data carriers and assets worth 11.4 million euros seized so far, including real estate, a luxury car, and various cryptocurrencies.
According to a post on Binance's blog, Binance's FCC and Investigations unit delved into the case. It gathered and verified information from open sources to identify the suspect—a Binance account holder. Once identified, Binance furnished authorities with the suspect’s identity as well as transaction tracing required by Dutch law enforcement to gather more details about the scheme.
In another post on Binance's blog, it is mentioned that Binance's compliance procedures and controls—particularly its anti-money laundering detection and analytics tools—were crucial to this investigation. However, it is also noted that the investigation is still underway and additional arrests may occur.