WhiteRock Founder Arrested Over $30 Million ZKasino Exit Scam WhiteRock Token Drops 38.30%

Ildar Ilham, the founder of WhiteRock Finance, has been arrested by UAE law enforcement authorities for his alleged involvement in the ZKasino exit scam, which resulted in the loss of $30 million. Ilham, also known by his online alias @XBT_Prometheus, is set to be extradited to the Netherlands, where his case will continue. The arrest comes more than a year after Dutch authorities announced an arrest linked to ZKasino, and follows the detention of another suspect, Elham Nourzai, who was apprehended on April 29, 2024. Messages exchanged between Ilham and Nourzai revealed their intent to never return the funds to investors, and that the smart contract for ZKasino was designed to enforce this.

The ZKasino exit scam involved the conversion of 10,505 ether (ETH) of user deposits, worth roughly $27 million, into the project’s own token before making it unavailable for users. The platform then promised a narrow window for users to withdraw their funds, but ultimately failed to deliver. A wallet linked to the heist was used to make a $27 million bet on the price of ETH, which ultimately lost. WhiteRock wallets were found to be commingling funds with ZKasino, raising concerns about the risk of another rug pull coming from WhiteRock.

Following the arrest of Ilham, WhiteRock's token, WHITE, experienced significant price volatility, declining by 38.30% in 24 hours. This drop in value, coupled with a 76.59% decrease in 24-hour trading volume, underscores the investor distress and caution amidst ongoing fraud allegations. The market cap of WHITE also saw a substantial decrease, falling to $287.74 million. This event has sparked concerns about the trust and scalability issues within the decentralized finance (DeFi) space, particularly in the context of evolving regulatory landscapes.

The arrest of Ilham and the ongoing investigation into the ZKasino exit scam highlight the risks associated with investing in cryptocurrency projects. The case also underscores the importance of due diligence and the need for greater regulation and oversight in the cryptocurrency industry. As the investigation continues, it remains to be seen what further developments will emerge and what the ultimate outcome will be for those involved in the ZKasino exit scam. The incident serves as a stark reminder of the potential for fraud and the need for vigilance in the rapidly evolving world of digital assets.