ZKasino’s new refund process following a rug pull

ZKasino, a blockchain-based gambling platform, recently faced a significant challenge when it was accused of a $33 million rug pull. The allegations surfaced after the platform failed to return investor funds following its network launch, leading to a loss of confidence among investors. In response, ZKasino has introduced a 72-hour “2-step bridge back process” to facilitate the return of funds to affected investors. This process involves investors sending back their entire ZKasino (ZKAS) token balance from the original investment address. Once the data is verified, a claim portal will enable the refund, though investors will forfeit any allocated ZKAS tokens and the remaining 14 months of the ZKAS release. However, there are concerns about the limited 72-hour window and the security of the sign-up page used for the process.

The announcement of the refund process was made by a figure known as “Derivatives Monke,” rather than the official ZKasino account, adding to the uncertainty surrounding the platform’s intentions. The situation escalated last month when approximately $33 million in investor funds were sent to Lido for staking instead of being returned, leading to accusations of an exit scam. Despite this, around two-thirds of the funds were eventually returned, and Dutch authorities arrested a suspect involved in the incident on April 29.

This development at ZKasino comes at a time when crypto-related hacks and scams have seen a notable decline. April recorded the lowest combined losses from such activities since 2021, with $25.7 million lost, including $129,000 from flash loan attacks and $4.3 million from exit scams. The first quarter of this year witnessed $336 million lost to Web3 hackers and fraud, with nearly half of the amount stolen in January alone.

The challenges faced by ZKasino highlight the ongoing risks and vulnerabilities within the cryptocurrency space, emphasizing the need for robust security measures and transparent practices to protect investors and maintain trust in blockchain projects.

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