ZKasino’s Response to Allegations
ZKasino, a blockchain-based gambling project, has responded to the accusations of a $33 million “rug pull” by implementing a 72-hour “2-step bridge back process” to reimburse investors. In a Medium post on May 28, ZKasino announced the commencement of the refund procedure, enabling investors to engage in the 2-step bridge back process with a 1:1 ratio for bridging back their Ethereum (ETH).
The team at ZKasino expressed: “The ZKasino team is dedicated to ensuring the project’s success. We want to reaffirm to everyone that we are committed to delivering and continuing to exert our best efforts.”
Details of the Refund Process
The refund process necessitates “bridgers” to return their entire ZKasino (ZKAS) token balance from the original address where they initially invested their Ether. Following a data validation phase, a claim portal will be established to facilitate the refund process. However, investors opting to receive their ETH back will forfeit any assigned ZKAS tokens and the remaining 14 months of the ZKAS release.
Concerns have been raised by some investors regarding the 72-hour timeframe allocated for the bridge back process, while others have exhibited doubts about the sign-up page, fearing it could potentially be a wallet drainer or a scam. Notably, the Medium post announcing the refund process was shared by “Derivatives Monke,” the builder behind ZKasino, rather than the project’s official account.
ZKasino encountered harsh criticism previously when it failed to uphold its commitment to refund investor ETH after the network launch, resulting in approximately $33 million of investor and user funds being directed to Lido for staking. The platform defended this decision by explaining modifications to the original plan, converting all bridged ETH into ZKAS at a reduced rate of $0.055 with a 15-month vesting schedule. Many individuals accused ZKasino of executing an “exit scam,” leading to the arrest of a suspect by Dutch authorities.
Derivative Monke maintained: “Our team vehemently denies any wrongdoing associated with the alleged ‘rug pull’ and remains focused on rectifying the situation.”
The cryptocurrency sector witnessed a substantial decline in collective losses due to hacks and scams in April. The month experienced the lowest total losses from crypto-related incidents since 2021, with around $25.7 million lost to exploits, hacks, and scams. Notably, flash loan attacks accounted for $129,000 in losses, while the most significant incident resulted in damages amounting to $55,000. Exit scams also led to losses amounting to $4.3 million.
During the first quarter of this year, $336 million was lost to Web3 hackers and fraudulent activities, with almost half of the stolen funds occurring in January alone.
