ZKasino, a blockchain-based gambling project, recently made headlines for its innovative move. Originally planning to return $33 million worth of investor and user funds in ETH, it changed course and sent it to staking protocol Lido.
In their recent blog post on April 20, ZKasino announced the launch of its network. More than 10,000 users have bridged over 10,515 Ether (ETH) to the network with hopes of collecting ZKasino (ZKAS) tokens. Initially promising their ETH back, users were surprised to find it was converted to ZKAS tokens at a discounted rate.
A mysterious crypto developer named “cygaar” alleges that ZKasino’s blockchain was “an Arbitrum Nitro chain that took 2 minutes to deploy” and is not using the promised zero-knowledge tech or EigenDA. He said, “They put ZERO effort into scamming everyone.”
Some have even spread the personal information and address of ZKasino’s founder, known on X as “Derivatives Monke,” using it to call for legal action.
On a popular platform, numerous ZKasino backers are claiming it’s an exit scam, even going as far as sharing the personal details of the founder, “Derivatives Monke,” to demand legal action.
Big Brain, a venture capital firm, stirred more controversy by stating on April 21 that ZKasino seems fraudulent and they never invested in it, despite ZKasino’s claim of a $350 million Series A round with backing from them and others.
