WhiteRock Founder Arrested in UAE Over $30M Crypto Scam

Ildar Ilham, founder of WhiteRock Finance, has been arrested by UAE law enforcement for his alleged involvement in the $30 million Zkasino exit scam. Ilham is set to be extradited to the Netherlands to face criminal charges related to the case.

The Zkasino Scam

Zkasino was a decentralized gambling platform that attracted investors with promises of high returns. The project raised over $30 million from eager investors during its presale. Instead of delivering on its roadmap, it abruptly ceased operations, leading to significant financial losses for investors.

Investigations revealed that the platform’s shutdown was part of a coordinated exit scam, with funds being siphoned off by those behind the project. This led to the arrest of the platform co-founder, Elham Nourzai, known online as Derivatives_Ape, in April 2024. The Dutch financial crime authorities accused him of fraud, embezzlement, and money laundering. Simultaneously, authorities seized millions of dollars in cryptocurrency assets, real estate, and luxury goods.

Later that year, Elham was released, and funds from Zkasino began to move. An on-chain investigation revealed that the funds were being slowly laundered through a process called chainhopping. This involves moving assets across multiple blockchains to obscure their origin.

The stolen funds began jumping between ZKsync, Starknet, EVM-compatible chains, and Solana. Each hop made the trail harder to trace, capitalizing on the fragmented nature of blockchain ecosystems.

Relationship Between ZKasino Scam and WhiteRock Finance

Blockchain investigator ZachXBT analyzed transaction data and found that wallets holding stolen ZKasino funds were directly fed into WhiteRock’s marketing wallets. 

Those same wallets were later used to pay influencers to promote WhiteRock. This indicates that stolen capital was being laundered through the new project. Hence, WhiteRock is strongly suspected to be the rebranded continuation of the ZKasino scam.

Meanwhile, ZachXBT also noted Ilham appeared later that year, and a series of red flags occurred. For instance, the team exaggerated the number of its users and announced dubious partnerships.

Fast forward to today, Ilham has been arrested, marking a pivotal moment in the ongoing efforts to bring those responsible to justice. The series of events surrounding the Zkasino scam serves as a stark reminder of the risks associated with unregulated platforms. It also emphasized the importance of conducting thorough due diligence before investing.

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