The recent ZKasino scandal has taken a new turn as the founder, Derivatives Monke, posted guidelines on how investors can reclaim their stolen ETH. Initially, ZKasino, a blockchain-based gambling platform, attracted users by promising an airdrop of its native token, ZKAS, if they transferred ETH to its network. However, the project later decided to keep the ETH and only distribute the tokens, resulting in significant investor backlash.
The project reportedly accumulated over 10,000 ETH (around $31 million) from more than 10,000 participants. As accusations of fraud and mismanagement surfaced, Dutch authorities intervened, arresting an individual connected to ZKasino and seizing assets worth about $12.2 million, including cryptocurrencies, real estate, and luxury vehicles. Binance also confirmed its cooperation with Dutch authorities in investigating the alleged scam.
In a recent development, ZKasino’s team announced a deal with authorities to return the stolen funds, but the process has raised suspicions. The team provided a 72-hour window from May 28 to May 31 for users to claim back their ETH, using Derivatives Monke’s personal account for the announcement instead of the official ZKasino account. Investors were advised to verify the authenticity of the announcement before connecting their wallets to the ZKasino website.
To reclaim their ETH, users must return all the ZKAS tokens they received and will forfeit the chance to earn more ZKAS tokens for the next 14 months. Given that the token is no longer trading and the project has lost credibility, this might not be a significant loss for many investors. The ZKasino project appears abandoned, with no communication from its founders on social media platforms like X and Telegram for over a month, except for the recent announcement about the ETH return.
Despite these issues, the ZKasino team denies any wrongdoing, asserting their honesty and dedication to the project’s success over the past three years. The future of ZKasino remains uncertain as the community and authorities closely monitor the situation.
This incident highlights the risks involved in investing in cryptocurrency projects, especially those promising high returns with little transparency. Investors should conduct thorough research and exercise caution before engaging with such projects.
