WhiteRock Finance Founder Arrested in UAE Over $30 Million Crypto Fraud

WhiteRock Finance founder Ildar Ilham has been arrested by authorities in the United Arab Emirates (UAE) in connection with an alleged $30 million (approximately 409 billion KRW) fraud associated with ZKasino, according to a report by Cointelegraph on the 3rd (local time).

Prominent cryptocurrency investigator ZachXBT reported the arrest via his X (formerly Twitter) account on October 12, stating that UAE authorities detained Ilham as part of a large-scale fraud investigation surrounding ZKasino. WhiteRock Finance is reportedly under suspicion of involvement in raising $30 million for ZKasino.

ZKasino was slated for launch in April 2024 and had promised to airdrop its native tokens to select users as a promotional strategy. However, more than a year has passed, and investors have yet to see their funds returned.

Extradition to the Netherlands Underway, Token Prices Plummet

In April 2024, Dutch authorities arrested a 26-year-old man in connection with the ZKasino scheme. The individual was identified as Elham Nourzai, a figure active within the cryptocurrency industry. ZachXBT indicated that Ildar Ilham’s arrest is linked to the ongoing investigation involving Nourzai and ZKasino, with extradition proceedings to the Netherlands now underway.

The report also mentioned another individual potentially connected to the case, Lior Ben Zakan, although details regarding his arrest remain unclear.

Following news of Ilham’s arrest, WhiteRock’s native token, WHITE, experienced a dramatic drop. On October 12, the token plunged over 40%, sliding from $0.0006582 to $0.0003909.

Latest in a String of Crypto Scams

The ZKasino case is among the latest examples of fraudulent schemes targeting cryptocurrency investors. In a separate incident, a victim reportedly lost more than $250,000 in a similar scam. U.S. authorities announced on Wednesday that they had recovered approximately $40,000 in stolen funds during the investigation.

The series of incidents underscores the growing prevalence of fraud in the cryptocurrency sector and highlights the need for enhanced safeguards to protect investors.