2024

Monke

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<p class="is-style-lead">Following the arrest of a suspected ZKasino founder last week, millions in staked Ether previously bridged were returned to the team’s original multi-sig wallet.&nbsp;</p>
<p>On May 9, <a href="https://etherscan.io/address/0x7911FeA7b36Fbd58a771bbf907aAd2ef4BDCC491" target="_blank" rel="noopener noreferrer nofollow">Etherscan</a> data showed ZKasino’s team wallet holding about 10,531 Lido staked Ether (<a href="https://crypto.news/price/lido-staked-ether/" target="_blank" rel="noopener noreferrer nofollow">stETH</a>) worth some $31.4 million at current market prices. The funds were previously moved to private wallets purportedly controlled by at least one founder of the project after users noted that withdrawals were <a href="https://crypto.news/zkasino-under-scrutiny-users-face-withdrawal-issues/" target="_blank" rel="noopener noreferrer nofollow">disabled</a>.&nbsp;</p>
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   <p lang="en" dir="ltr">BREAKING! All the bridged ETH are now back in the original multi-sig wallet. Something is happening, could they be planning to refund Zkasino victims? <a href="https://t.co/Miqcv2Bax9" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/Miqcv2Bax9</a></p>— $JAIL (@jail_monke) <a href="https://twitter.com/jail_monke/status/1788558550530175119?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">May 9, 2024</a>
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<p>As crypto.news reported, Binance <a href="https://crypto.news/binances-investigations-team-aids-in-arrest-of-zkasino-scam-suspect/" target="_blank" rel="noopener noreferrer nofollow">helped</a> law enforcement in tracing the funds. Aid from the crypto exchange supported the Dutch Fiscal Information and Investigation Service (FIOD) in making an arrest late last month.&nbsp;</p>
<p>An unnamed suspect was <a href="https://crypto.news/zkasino-rug-pull-suspect-detained-in-netherlands/" target="_blank" rel="noopener noreferrer nofollow">detained</a> and FIOD agents seized assets including a $12 million luxury automobile.&nbsp; Despite the arrest, ZKasino funds continued to move on-chain and fueled theories that multiple individuals were involved in what many have labeled an exit scam, commonly known as a rug pull in crypto.&nbsp;</p>
<p>You might also like: <a href="https://crypto.news/binances-investigations-team-aids-in-arrest-of-zkasino-scam-suspect/" rel="noopener noreferrer nofollow"> Binance’s Investigations team aids in arrest of ZKasino scam suspect </a></p>
<h2 class="wp-block-heading" id="zkasino-denies-binance-fud">ZKasino denies Binance “FUD”&nbsp;</h2>
<p>After the news broke, and funds mysteriously returned to the ZKasino multi-sig wallet, a pseudonymous developer associated with the project refuted the claims by Binance and the larger crypto community.&nbsp;The personality operating under the monicker “Derivatives Monke” on X, explicitly stated that the claims were “false and damaging to the ZKasino brand”.&nbsp;</p>
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 <p>We would like to assure everyone that we will continue our best efforts like we have for the past 3 years and that we will continue making the project succeed.</p> <cite>Derivatines Monke refutes Binance claims</cite>
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<p>The statement received heavy backlash from users and observers who said the cryptocurrency betting platform had broken the trust of its over 10,000 users. On-chain analytics provider <a href="https://x.com/nansen_ai/status/1788609834192863413" target="_blank" rel="noopener noreferrer nofollow">Nansen</a> also questioned Derivatives Monke on why the assets were moved during the <a href="https://crypto.news/eigenlayer-airdrop-draws-criticism-amidst-transferability-concerns-allocations/" target="_blank" rel="noopener noreferrer nofollow">Eigenlayer</a> airdrop saga, and then returned after an arrest in the Netherlands.&nbsp;</p>
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   <p lang="en" dir="ltr">Why were funds moved from the multisig 10 days ago during the Eigenlayer noise, only to be returned to the multisig 6 hours ago? <a href="https://t.co/kVmUxXDYO1" target="_blank" rel="noopener noreferrer nofollow">https://t.co/kVmUxXDYO1</a> <a href="https://t.co/AOrgicEaGB" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/AOrgicEaGB</a></p>— Nansen 🧭 (@nansen_ai) <a href="https://twitter.com/nansen_ai/status/1788609834192863413?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">May 9, 2024</a>
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<p>Read more: <a href="https://crypto.news/zkasino-presents-dao-governance-model-following-accusations-of-32m-rug-pull/" rel="noopener noreferrer nofollow"> ZKasino presents DAO governance model following accusations of $32m rug pull </a></p>

ZKasino’s $31m ETH returned to team wallet after founder’s arrest

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