ZKasino starts ETH return process amid fraud allegations

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Blockchain-powered gambling platform ZKasino has launched a 72-hour refund process to refund its investors. The decision comes a month after the project was allegedly underfunded by $33 million. Despite the project's so-called “2-step bridging backlog” of the refund process, some investors have doubts about the validity of the claims and the project's intentions.

In a Medium post on May 28, he stated that “bridges” can be registered and link Ether (ETH) at a 1:1 ratio.

The refund process requires “Bridger” to send their entire Zkasino (ZKAS) token balance to the original address they used for their first ETH investment. ZKasino promises to open a claim portal after the data verification process. However, investors who opt for refund will lose their allotted ZKAS and remaining 14 months of ZKAS issuance. Although the update was posted on ZKasino's Medium page, some investors expressed concern about the accuracy of the refund process. Questions have been raised about the 72-hour window option, and some are concerned that the registration page could be a wallet or scam.

Adding to the suspense, the Medium post was not shared by ZKasino's official X account, but only by the ZKasino developer known as “Derivatives Monke” at the center of the controversy.

Last month, Zcasino faced heavy criticism after the network went live for breaking promises to return investors. Instead, the platform sent $33 million in investor and user funding to Lido, saying, “We've changed from our original plan.”

Many have accused the platform of engaging in an “exit scam” or “carpet pulling” by converting all bridged ETH to ZKAS at a “discounted price of $0.055” during a 15-month landing program.

A week after the controversy, the Dutch authorities arrested one of the people suspected of being responsible for the “carpet pulling” – Derivatives Monke. A few days later, two-thirds of the stolen funds were returned to the ZKasino multisig wallet. DerivativeMonkey has publicly denied allegations of far-fetching against X, stating that it “strongly rejects” FOD and Binance's claims that they engaged in exit manipulation or carpet-dragging.

He said he is working hard to fix the project and ensure its success, but the lack of official communication from the casino's main channels and a history of broken promises have left investors wondering about the legitimacy of the refund process.

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