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$33M in Promised Refunds Redirected to Lido, Leaving ZKasino Users Furious

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$33M in Promised Refunds Redirected to Lido, Leaving ZKasino Users Furious

ZKasino, a gambling project based on blockchain technology, has received criticism for diverting $33 million worth of funds from investors and users to the staking protocol Lido, contrary to its initial plan of returning the funds. The project announced the launch of its network on April 20, but instead of returning the funds as promised, ZKasino converted all bridged Ether to its own ZKasino (ZKAS) token at a discounted rate and on a 15-month vesting schedule. The project removed a statement from its website that stated the Ether would be returned, raising concerns among users. These concerns grew when ZKasino transferred all the Ether to the staking protocol Lido. An anonymous crypto developer accused ZKasino of deploying an Arbitrum Nitro chain instead of using the promised zero knowledge technology or EigenDA.

On social media platform X, numerous posts from alleged ZKasino users who had invested in the project claimed that it was an exit scam. Some even shared personal information and the address of ZKasino’s founder, known as “Derivatives Monke,” calling for legal action. Venture capital firm Big Brain added to the controversy by stating that ZKasino appeared to be fraudulent and denying any investment in the project. ZKasino had previously claimed to have closed a Series A investment round with a $350 million valuation and the support of crypto exchange MEXC and venture firm Big Brain Holdings, among others. MEXC distanced itself from ZKasino’s actions, emphasizing that it was merely one of the investors and claiming to be a victim as well.

ZKasino, its founder, its parent company ZigZag Labs, and MEXC have yet to respond to requests for comment. The project has remained largely silent amid the backlash, only posting a routine update about integrating EIP-3074 on X. Derivatives Monke, in response to criticism, shared the project’s latest post with the comment “keep building.”

9 thoughts on “$33M in Promised Refunds Redirected to Lido, Leaving ZKasino Users Furious

  1. It’s frustrating to see projects like ZKasino tarnish the reputation of the crypto industry. Let’s continue supporting initiatives that prioritize transparency, security, and the well-being of their community. Together, we can create positive change!

  2. It’s disheartening to see ZKasino’s lack of response to the concerns raised by users. Clear communication is crucial to maintain trust and accountability. Let’s continue demanding answers and holding them responsible!

  3. I’m glad the community is speaking up and sharing their concerns about ZKasino. 🗣️ We need to work together to expose fraudulent projects and protect fellow investors. Let’s stay vigilant! 👀🔒

  4. I hope there will be legal consequences for ZKasino and its founder. We need to protect the integrity of the crypto industry and ensure that projects uphold their commitments to investors. Justice must prevail!

  5. It’s clear that ZKasino’s claims of integrity were merely a smokescreen for their fraudulent activities. They deserve legal action and accountability for their actions! 💔🛡️

  6. Big Brain’s statement confirming ZKasino’s fraudulent behavior is concerning. It’s crucial for investors to research and choose projects wisely. Let’s learn from this experience and ensure better due diligence!

  7. Let’s hope that the truth about ZKasino’s actions comes to light soon. Transparency and accountability are essential if we want to build a stronger and more trustworthy crypto ecosystem. Stay vigilant, everyone!

  8. ZKasino’s actions highlight the risks of investing in blockchain projects. It’s disheartening to see such betrayal towards the crypto community. They need to be held accountable! 😔🔒

  9. It’s disheartening to see ZKasino’s lack of transparency amid the mounting concerns. The crypto community deserves honest and responsible projects that prioritize the well-being of their users and investors. Let’s demand better!

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