Million

April

Monke

Nitro

<a href="https://bitcoinworld.co.in/zkasino-diverts-33-million-users-funds-to-lido-sparking-fraud-allegations-and-investors-outrage/" title="ZKasino Diverts $33 Million Users Funds To Lido, Sparking Fraud Allegations and Investors’ Outrage" rel="noopener noreferrer nofollow"></a>
The blockchain gambling platform ZKasino has faced significant criticism after diverting $33 million in investors and users funds to the staking protocol Lido.
This move, disclosed in a blog post on April 20, deviated sharply from the initial promise to return these funds.
According to ZKasino’s announcement, its network had successfully launched, attracting over 10,000 users who transferred a total of 10,515 Ether in exchange for the platform’s native ZKasino (ZKAS) tokens.
Contrary to expectations, the platform converted the bridged ETH to ZKAS tokens at a “discounted rate of $0.055” on a 15-month vesting schedule, a change from the original plan.
ZKasino described these changes as “done as a favour” to ensure a “seamless transition” to its chain, which does not utilize ETH.
This led to user concerns, especially after the company altered its website to omit previous guarantees of ETH returns.
See Also: <a class="row-title" href="https://bitcoinworld.co.in/crypto-market-stumbles-after-the-arrest-of-samourai-wallet-ceo-cto/" aria-label="“Crypto Market Stumbles After The Arrest Of Samourai’s CEO And CTO” (Edit)" rel="noopener noreferrer nofollow">Crypto Market Stumbles After The Arrest Of Samourai’s CEO And CTO</a>
Further scrutiny arose after an on-chain analysis revealed that ZKasino had transferred all the user’s ETH to Lido.&nbsp;
Adding to the controversy, an anonymous developer identified as “cygaar” criticized the technological underpinnings of ZKasino’s blockchain.
According to cygaar, the blockchain was merely an “Arbitrum Nitro chain that took 2 minutes to deploy” and did not incorporate the promised zero knowledge or EigenDA technologies.
Outraged users have voiced their concerns on X, with some accusing the project of being an exit scam and sharing personal details of ZKasino’s founder, known as “Derivatives Monke,” to push for legal actions.
The situation escalated with Venture capital firm Big Brain denouncing the project.
In an X post dated April 21, Big Brain <a href="https://x.com/BigBrainVC/status/1782024980013703594" rel="noopener noreferrer nofollow">clarified</a> that it “never invested in ZKasino” despite previous claims by ZKasino of securing a Series A funding at a valuation of $350 million from notable firms including MEXC and Big Brain Holdings.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 Big Brain Holdings invested into the <a href="https://twitter.com/ZigZagExchange?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@zigzagexchange</a> project in 2022, which subsequently resulted in financial losses for us. Some of the previous founders of that project are now part of the <a href="https://twitter.com/ZKasino_io?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@ZKasino_io</a> team, which appears to be fraudulent.
 We have never invested in ZKasino…
 — Big Brain Holdings (@BigBrainVC) <a href="https://twitter.com/BigBrainVC/status/1782024980013703594?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 21, 2024</a>
</blockquote>
<script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
In response, MEXC, a crypto exchange implicated as an investor, distanced itself from ZKasino’s actions.
On April 21, TechFlow reported MEXC’s statement emphasizing that the exchange was “just one of the investors” and also a victim of ZKasino’s decisions.
Meanwhile, both ZKasino and its founder have remained largely silent on the backlash, except for minimal updates and responses to criticisms on X.
Despite the turmoil, Derivatives Monke continues to engage minimally on the platform, indicating a commitment to “keep building,” reflecting a possible attempt to maintain a facade of normalcy amidst the growing controversy.
<blockquote>
 Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.
</blockquote>
#Binance #WRITE2EARN
The post <a href="https://bitcoinworld.co.in/zkasino-diverts-33-million-users-funds-to-lido-sparking-fraud-allegations-and-investors-outrage/" rel="noopener noreferrer nofollow">ZKasino Diverts $33 Million Users Funds To Lido, Sparking Fraud Allegations and Investors’ Outrage</a> appeared first on <a href="https://bitcoinworld.co.in" rel="noopener noreferrer nofollow">BitcoinWorld</a>.

ZKasino Diverts $33 Million Users Funds To Lido, Sparking Fraud Allegations and Investors’ Outrage

ItsBitcoinWorld

Other articles published on Apr 25, 2024

XRP Price: Whales Shift 150M Coins As Price Dips To $0.52, What’s Next?

Algotech’s AI Trading Features & Massive $250K Giveaway Causes Frenzy in Cardano and Tron Price P...

KILT Protocol (KILT) Price Prediction 2025, 2026, 2027, 2028, 2029 and 2030

Harga BTC Diprediksi Bisa Mencapai US$170 Ribu, Apa Kabar Kinerja Polygon (MATIC) dan Rollblock (...

Woman accused of $6B scam, China loophole for Hong Kong Bitcoin ETFs: Asia Express

In May of 2024, how much higher could the SHIB price go?

Join our free newsletter for daily crypto updates!