Scam Alert: Crypto Betting Site ZKasino Rug Pulls, MEXC Dissociates Self

It’s been suggested that ZKasino, a decentralized gambling platform, might have deceived its users with a “rug pull” scam. In simpler terms, there are concerns that the team behind ZKasino may have suddenly abandoned the project and taken the funds with them.

ZKasino Makes Suspicious Moves

In March, ZigZag, a decentralized peer-to-peer order book exchange, made some claims against ZKasino. These claims center around the alleged misuse of funds meant for project development for personal gain instead.

Additionally, ZigZag pointed out that the crypto gambling site deceived its customers by providing false information regarding its financing. ZKasino failed to meet its responsibility by not compensating certain developers and contractors who contributed to building the platform.

“The initial money to build ZKasino was stolen from the ZigZag Treasury. The ZKasino founders are 3/5 signers on the ZigZag multisig so they were able to use the funds to fund their own activities…The $40 million ecosystem fund they announced isn’t real, and will likely never be paid out in any real currency,” ZigZag stated.

The claims made by ZigZag didn’t receive the level of interest they hoped for until users of ZKasino expressed worries about the platform potentially breaking a previous promise to restore bridged Ethereum. It remains unclear if this is a scam or an attempt to spread fear, but it’s important to mention that crypto spaces have seen an increase in fraudulent activities recently.

Similar to ZKasino’s incident, rug pulls have been a recurring issue in recent history. Not too long ago, Hong Kong police announced an increase in the number of suspects apprehended regarding last year’s JPEX Exchange rug pull. To date, over 72 individuals including JPEX executives have been taken into custody.

In simpler terms, it’s important for crypto users to exercise caution and thoroughly research any project before investing their money.

MEXC and Other Investors Dissociates From ZKasino

Some entities have stated that they are not connected to ZKasino due to the serious allegations against the platform and the potential consequences for those involved.

MEXC, a cryptocurrency trading platform that took part in ZKasino’s Series A fundraising round with an estimated worth of $350 million, made it clear to the community that they were unaware of any planned “rug pull” incident in relation to this project.

In addition, MEXC said it is only one of ZKasino’s investors who also fell victim to its tactics.

In 2022, Big Brain Holdings announced they had invested in a venture called Zigzag Exchange. Sadly, their investment resulted in financial losses. It’s important to note that Big Brain didn’t invest in ZKasino directly. However, the firm expressed concern as some of the original founders of Zigzag now work for ZKasino, which raises red flags due to allegations of fraudulent activities.

Big Brain Holdings stated that its only interaction with ZKasino was a proposed token distribution offer, which it hasn’t received yet. The company has no intention of accepting the tokens given recent developments. In the near future, many more companies may publicly withdraw their support for ZKasino.

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2024-04-21 18:37