ZKasino Initiates 72-Hour Refund Process for Investors Following Rug Pull Allegations

ZKasino, the blockchain-based gambling project accused of conducting a $33 million “rug pull” last month, has taken steps to address the allegations by initiating a 72-hour “2-step bridge back process” to return funds to investors.

TLDR

• ZKasino, a crypto gambling platform accused of vanishing with $30 million in user deposits, has offered to let investors claim their Ether deposits back within a 72-hour window.
• The move comes after Dutch police arrested a 26-year-old man suspected of fraud, embezzlement, and money laundering in connection with ZKasino on May 3.
• ZKasino maintains that it is a legitimate project, despite accusations from investors and Dutch authorities of running off with funds.
• To claim their funds, investors must send back their full ZKasino (ZKAS) token balance from the original address they sent their initial Ether investment, forfeiting any allocated ZKAS and the remaining 14 months of ZKAS release.
• Concerns have been raised about the 72-hour window and the legitimacy of the refund process, with some investors fearing it could be a scam or a wallet drainer.

The move comes after Dutch authorities arrested a 26-year-old man suspected of fraud, embezzlement, and money laundering in connection with ZKasino on May 3.

In a Medium post on May 28, ZKasino announced the refund process, which allows investors to participate in a 2-step bridge back process with a 1:1 ratio for bridging back their Ethereum (ETH).

The post stated,

“The ZKasino team is still working hard to make the project successful. We again want to assure everyone that we are here to deliver and continue our best efforts.”

However, the refund process has sparked concern among investors. To claim their funds, “bridgers” must send back their complete ZKasino (ZKAS) token balance from the original address where they initially invested their Ether.

After a data verification process, a claim portal will be opened to facilitate the refund. Investors who choose to receive their ETH back will forfeit any allocated ZKAS tokens and the remaining 14 months of the ZKAS release.

Some investors have questioned the 72-hour window for the bridge back process, while others have expressed skepticism regarding the sign-up page, fearing it may be a potential wallet drainer or scam.

It is worth noting that the Medium post announcing the refund process was not shared by ZKasino’s official account but rather by the ZKasino builder known as “Derivatives Monke,” who has been at the center of the controversy.

ZKasino faced severe criticism last month when it failed to fulfill its promise of returning investor ETH after the network went live.

Instead, approximately $33 million worth of investor and user funds were sent to Lido for staking. The platform justified this action by stating that changes had been made to the initial plan, converting all bridged ETH into ZKAS at a discounted rate of $0.055 with a 15-month vesting schedule. Many accused ZKasino of executing an “exit scam.”

Following the incident, Dutch authorities seized around €11.4 million worth of various assets, including real estate, a luxury car, and various cryptocurrencies.

Subsequently, around two-thirds of the stolen funds were returned to the ZKasino multisig wallet, and Derivative Monke publicly denied the rug pull allegations.

Despite the refund process, concerns remain about the legitimacy of ZKasino and its operations. The platform’s founder, Ildar Elham, also known as Derivatives Ape, appears to have a shady history involving previous failed crypto projects like ZigZagExchange and Syncus, which continues to raise questions about the platform’s intentions and the latest claims made by the project.