As a crypto investor who has experienced my fair share of scams and rug pulls in the past, I can’t help but feel a sense of skepticism towards ZKasino’s latest announcement. While it’s commendable that they are trying to make things right by refunding affected investors, their tarnished reputation and questionable actions leading up to this point make it hard for me to trust them.
As a researcher studying the latest developments in the cryptocurrency world, I’m bringing up the topic of ZKasino once more. This gambling platform has recently resurfaced with the announcement that they will be refunding affected users following the controversy over the past month. Unfortunately, ZKasino found itself under scrutiny after allegations surfaced that they had misappropriated a significant sum of $33 million from their investors.
ZKasino Returns To Refund Investors
On Tuesday, ZKasino disclosed that investors whose funds were “roughly handled” could recover their assets within the next 72 hours through a designated refund process. The crypto exchange’s founder, Derivatives Ape, specified that those eligible had until May 31, at 14:00 UTC, to register and retrieve their funds.
As mentioned in the article, investors who decided against joining the ZKAS conversion now have the opportunity to initiate a two-part procedure to reconnect their Ether (ETH) using the ZKAS bridge. To begin this process, bridgers need to transfer the initial portion of ZKAS reward tokens they obtained into a smart contract overseen by ZKasino.
Additionally, investors give up the chance to receive ZKAS tokens for the following 14 months by joining. Once the May 31 cut-off date passes, registration for the Bridge back procedure will no longer be available, and deposits for ZKAS will be frozen.
After completing the sign-up process and providing necessary data, the claim portal will become accessible following verification of the information. Consequently, users, referred to as Bridgers, can redeem their ETH at a 1:1 rate from a newly audited bridge contract situated on Ethereum Mainnet.
Crypto Community Tired Of The Project
The announcement met with criticism because the founder chose to disseminate it through their personal X account rather than utilizing the project’s recognized channels. It is important to mention that ZKasino’s official X account stopped updating at the end of April when rumors of a rug pull began to circulate vigorously.
The actions of the community have brought attention to the questionable standing of the platform and its creator. Some investors expressed concern that the refund process might be a fraudulent scheme, casting doubt on the authenticity of the links involved. Others urged the crypto project to return their ETH.
One user expressed concern, saying, “I’m hesitant about this… could there be an ulterior motive to deplete our Ethereum funds? Please return our ETH.” Another investor raised a question, “Is it secure? Have the developers thoroughly reviewed the code?”
It appears that numerous users encountered difficulties in linking their wallets or signing up, leading to concerns. Furthermore, some inquiries were raised regarding the justification for the brief refund processing period, as it had taken longer than a month to initiate the process.
I’ve recently come across some troubling news as a crypto investor. According to Bitcoinist, Dutch authorities have apprehended a 26-year-old individual in connection with an investigation into ZKasino, a crypto project that has been under suspicion of being a rug-pull scam. For days, uncertainty hung heavy over the community as we closely monitored the project’s activity. Regrettably, our fears were confirmed when the platform began displaying signs of serious concern, leaving many investors feeling disappointed and potentially financially impacted.
The bridge was closed for maintenance and remained unavailable for use for several days. However, since April 24th, the X account on the platform has ceased to post updates.
After that point, it’s been the founder alone who’s kept investors informed. On May 9th, he made a statement in which he accused Binance and the Dutch Fiscal Information and Investigation Service (FIOD) of disseminating “misleading information” concerning the project.
Additionally, Derivatives Ape asserted that the gambling platform did not engage in a “supposed ‘exit scam’ or ‘rug pull'” and reassured users that their Ethereum (ETH) was securely stored in the ZKasino multisig wallet managed by them.
Despite this, the founder of ZKasino appears to have a questionable history marked by collapsed cryptocurrency initiatives and problematic behaviors. Notably, he has been linked to rival crypto exchange ZigZag and Decentralized Finance (DeFi) project Syncus.
In the end, the crypto community has severely criticized the project, labeling it as one of the least impressive or trustworthy within the industry.
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2024-05-30 08:12