Founder of WhiteRock Finance Detained in UAE for $30 Million ZKasino Fraud

Ildar Ilham, the founder of WhiteRock Finance, has been detained in the United Arab Emirates (UAE) as part of an ongoing investigation into a $30 million fraud scheme linked to the ZKasino platform. The arrest comes more than a year after Dutch authorities initially announced their interest in Ilham's involvement in the case. Ilham's extradition to the Netherlands is currently underway, where he will face further legal proceedings.

The investigation centers around allegations that Ilham was involved in the ZKasino exit scam, which resulted in the loss of $30 million. The scam involved the conversion of user deposits into the project’s own token, making the funds unavailable for withdrawal. This move left users stranded and unable to access their investments. The smart contract used by ZKasino was reportedly designed to enforce the non-return of funds, further complicating the situation for affected users.

Ilham's arrest is connected to the broader investigation against Elham Nourzai, another key figure in the ZKasino scam. Nourzai was arrested by Dutch authorities on April 29, 2024. Messages exchanged between Ilham and Nourzai revealed their intent to never return the funds to ZKasino users, confirming the premeditated nature of the scam. The investigation has also uncovered evidence of funds being laundered through various channels, including Hyperliquid bets, over-the-counter brokers, and conversion into the privacy-oriented cryptocurrency Monero.

When the ZKasino platform launched in April 2024, it had promised to airdrop native tokens to specific users, but over a year had passed without fulfilling this promise. The case details indicate that the platform's failure to deliver on its promises raised suspicions and led to the ongoing investigation. Another suspected individual, Lior Ben Zakan, has not been mentioned yet.

The arrest of Ilham and the ongoing legal proceedings highlight the complexities and risks associated with the cryptocurrency industry. The case serves as a reminder of the need for robust regulatory frameworks and increased vigilance to protect investors from such fraudulent activities. As the investigation continues, it is expected that more details will emerge, shedding further light on the extent of the scam and the roles played by the individuals involved.