ZKasino, a prominent blockchain gambling platform, is under fire for allegedly diverting $33 million in user and investment funds, angering investors.
The scandal
The story started with the highly anticipated network launch of ZKasino on April 20. Thousands of enthusiastic users had transferred more than 10,000 Ethereum (ETH) to the platform.
Instead of fulfilling the promise to return the transferred ETH, ZKasino surprised its community by pulling off a cunning move. They converted the funds into ZKAS tokens, subjecting investors to a long, unannounced vesting period of 15 months.
Users were initially attracted by the allure of blockchain-based gambling, but they suddenly found themselves embroiled in a real gambling game of a different kind. As suspicions increased, users discovered changes on ZKasino’s website, including the disappearance of insurance regarding fund returns.
The revealing facts
However, the bombshell exploded when on-chain sleuths revealed a transfer of all transferred ETH to the Lido staking protocol for interest. To compound the problem, individuals like ZachXBT had already warned the public 4 months ago not to invest in a project that was allegedly developed by a group of proven bad actors.
Even venture capital firm Big Brain Holdings, one of the alleged investors, distanced himself from ZKasino, which further cast doubt on the project’s legitimacy. This, along with the cancellation of the ZKasino token on the crypto exchange MEXC, has put users on hold. Unable to access their money or make sense of the chaos around them, investors are pressing for refunds and answers.
The story serves as a sober reminder of the risks inherent in the volatile world of blockchain ventures. As users count their losses and the crypto community waits for the next development, one thing remains clear: trust once broken is not easily regained.
Source: https://bitcoinmagazine.nl/nieuws/zkasino-beschuldigd-van-afleiding-van-33-miljoen-aan-eth
