WhiteRock Founder Arrested in UAE Amid $30M ZKasino Fraud Allegations, Extradition Underway
Authorities in the United Arab Emirates have reportedly detained Ildar Ilham, the founder of decentralized finance platform WhiteRock Finance, in connection with a $30 million fraud investigation tied to the controversial ZKasino project. The arrest is the latest development in a growing legal case that has captured the attention of the crypto community.
According to blockchain investigator ZachXBT, who shared details via a post on X (formerly Twitter) on Thursday, Ilham was arrested on charges related to “wide-scale fraud” associated with the ZKasino fundraising scheme. Ilham is now facing extradition to the Netherlands, where Dutch authorities are leading the criminal investigation.
Update: Ildar Ilham aka @XBT_Prometheus (founder of @WhiteRock_Fi) was arrested by UAE law enforcement for his involvement in the $30M Zkasino exit scam.
He will be extradited to the Netherlands next for the criminal case. pic.twitter.com/h5FZhUBiDg
— ZachXBT (@zachxbt) July 3, 2025
ZKasino Fundraising Under Scrutiny
ZKasino, a crypto project launched in April 2024, gained traction by promoting a new platform and promising airdrops of its native token to early adopters and participants. However, over a year later, reports indicate that the funds raised—totaling $30 million—have not been returned to investors, triggering accusations of fraud and embezzlement.
The Dutch Fiscal Information and Investigation Service (FIOD) previously arrested a 26-year-old suspect in April 2024, widely believed to be crypto figure Elham Nourzai, on charges of fraud, money laundering, and embezzlement in connection to the ZKasino case. ZachXBT’s latest report suggests that Ilham’s arrest is directly linked to that earlier investigation.
Though authorities have not formally confirmed whether Ilham and Nourzai acted together, blockchain analysts have pointed to ties between WhiteRock Finance and ZKasino, suggesting a coordinated effort behind the fraudulent scheme.
Market Impact: WHITE Token Plunges
News of Ilham’s arrest sent shockwaves through the WhiteRock ecosystem, with its native token WHITE experiencing a sharp decline. The token dropped over 40% in value on Thursday, falling from $0.0006582 to $0.0003909 within hours of the report.
The token’s collapse highlights market sensitivity to legal risks and reputational damage within the decentralized finance (DeFi) space. Investor confidence in WhiteRock has been significantly shaken, and it remains uncertain how the protocol will respond to leadership and legal turmoil.
Broader Context: A String of Crypto Scams
The ZKasino scandal is one of the latest high-profile fraud cases targeting crypto users. Earlier this week, U.S. authorities revealed they had recovered $40,000 from a separate incident involving a fraudulent presidential inaugural committee, which stole more than $250,000 from an unsuspecting donor.
The case reflects growing global efforts to clamp down on crypto-related scams, particularly those involving anonymous founders, opaque fundraising, and failed token distributions. Authorities in the U.S., Europe, and the Middle East have increasingly coordinated enforcement efforts to prosecute fraudulent schemes that span jurisdictions.
Extradition Process Underway
Ilham’s arrest marks a key milestone in the ongoing ZKasino investigation. Extradition proceedings to the Netherlands have begun, where he is expected to face formal charges if the request is approved.
While Lior Ben Zakan, another individual previously suspected of involvement, was not named in this latest arrest report, further legal developments may emerge as the case unfolds.
As the crypto industry continues to evolve, the WhiteRock-ZKasino affair underscores the importance of regulatory oversight, transparency in project funding, and due diligence from investors engaging with decentralized protocols.
