That's excellent news, @fairbet! It's great to see the community taking this issue seriously, and I believe this case will serve as an excellent "blockchain forensics" case study by which we can use the blockchain to protect the community. You can see from the general consensus of the comments on this post that NUMEROUS well-respected Steemit members (who are also knowledgeable on the subject of gambling) are making STRONG (and generally SIMILAR) complains about this @kryptogames operation. I have now begun reporting this case to higher-ups in the Steemit administration, and gotten some SERIOUS attention and concern, and will be providing additional evidence to them as the week progresses. I have also re-reading the Steemit "Terms of Service" ( https://steemit.com/tos.html ), and you can see that:

Section 5.7. Nothing in this Agreement excludes or limits liability for death or personal injury caused by negligence, fraudulent misrepresentation, or any other liability which may not otherwise be limited or excluded under United States law.

and

9.7. Accuracy of Information. You represent and warrant that any information you provide via the Services is accurate and complete. You accept and acknowledge that we are not responsible for any errors or omissions that you make in connection with any Steem blockchain transaction initiated via the Services, for instance, if you mistype an Account name or otherwise provide incorrect information. We strongly encourage you to review your transaction details carefully before completing them via the Services.

and

12.1. We may, in our sole discretion and without cost to you, with or without prior notice and at any time, modify or discontinue, temporarily or permanently, any portion of our Services. You are solely responsible for storing, outside of the Services, a backup of any Account and Private Key that you maintain in your Account.

12.2. If you do not maintain a backup of your Account data outside of the Services, you will be may not be able to access STEEM, Steem Dollars and Steem Power associated with any Account maintained in your Account if we discontinue or deprecate the Services.

13.1. We may suspend or terminate your access to the Services in our sole discretion, immediately and without prior notice, and delete or deactivate your steemit.com account and all related information and files in such without cost to you, including, for instance, if you breach any term of this Agreement. In the event of termination, your access to the funds in your account will require you access to the Steem blockchain via the command line API or third party tool, and will require you to have access to your backup of your Account data including your Account and Private Keys.

14.1. When accessing or using the Services, you agree that you will not commit any unlawful act, and that you are solely responsible for your conduct while using our Services. Without limiting the generality of the foregoing, you agree that you will not:

14.1.1. Use of our Services in any manner that could interfere with, disrupt, negatively affect, or inhibit other users from fully enjoying our Services, or that could damage, disable, overburden, or impair the functioning of our Services in any manner;

14.1.2. Use our Services to pay for, support or otherwise engage in any activity prohibited by law, including, but not limited to illegal gambling, fraud, money-laundering, or terrorist financing activities.

As I also continue the process of reporting this issue to the wider "internet gambling" community, via sites such as https://www.askgamblers.com/submit-complaint, I would like to suggest that the Steem/Steemit administration IMMEDIATELY freeze the account and assets of this @kryptogamers profile (and/or put them in escrow), in line with the respective items in the Terms of Service (above) and the general criminal law process of freezing "tainted money" due to lawful investigation.

As of writing this comment, @kryptogames has the following assets in their wallet:

27,100.000 STEEM
6,997.266 Steem Power
20,535.532 (Delegated Steem)

If a proper administrative investigation finds that the claims of fraud are indeed "true beyond reasonable doubt" then these funds could be paid out to those claiming legal remedy. Ideally, my hope is that most/all of those who have lost funds due to the "alleged" fraudulent activities of this @kryptogames operation will be compensated fairly for their losses. I have stated my requested remedy (5,000 Steem --> converted directly to Steem Power) based on the DIRECT and COLLATERAL damage created by the "alleged" fraudent activity of this operation. If it does prove that they are engaging in illegal activity on the Steem blockchain then the Terms of Service imply that ANY/ALL funds taken in by this organization can be frozen as a result of being "tained assets" ( http://www.burnhamgorokhov.com/can-government-freeze-assets-need-hire-attorney/ )

It is late here where I am, and so I will conclude this here and the continue my efforts daily as I get additional feedback from the relevant people/organizations who I will be supplying further detail on this issue to. Thanks so much, again, for taking this issue seriously, and please update myself (and the other members affected by this issue) in the blockchain-documented comments section of the pages of this @kryptogames account. Hopefully, we can solve this issue with PROPER legal process, protect the Steem/Steemit community, and come out stronger on the other side.