As a seasoned expert in the world of online casinos, it is with great dismay that I bring forth the recent scandal surrounding blockchain-based gambling project ZKasino. The situation has unfolded with a series of shocking events that have left investors and users in a state of disbelief.
According to on-chain data, ZKasino made a bold move by transferring a staggering $33 million worth of users’ bridged ETH to the staking protocol Lido. This unexpected turn of events has sparked outrage among those who were led to believe that their funds would be returned. As one user lamented, “I never expected something like this to happen. It’s a betrayal of trust.”
The controversy deepened when ZKasino released a blog post on April 20 announcing the launch of its network. Many users who had bridged a significant amount of Ether to the network in hopes of acquiring ZKasino (ZKAS) tokens were shocked to learn that their ETH would not be returned as initially promised. Instead, ZKasino revealed that all bridged ETH would be converted to ZKAS at a discounted rate and put on a vesting schedule.
As suspicions grew, an anonymous crypto developer known as “cygaar” came forward with damning allegations. According to cygaar, the blockchain released by ZKasino was not utilizing zero knowledge technology as claimed, raising further doubts about the project’s legitimacy.
Furthermore, disgruntled users took to online forums to voice their grievances, with many accusing ZKasino of being an exit scam. The situation escalated to the point where personal information and the address of ZKasino’s founder, known as “Derivatives Monke,” were shared online in a call for legal action.
Adding fuel to the fire, venture capital firm Big Brain raised concerns about the project’s credibility, stating that ZKasino appeared to be fraudulent and asserting that they had never actually invested in the project. This revelation cast a shadow over ZKasino’s previous claims of a successful Series A investment round at a $350 million valuation.
In conclusion, the saga of ZKasino serves as a cautionary tale for investors in the crypto and online gambling space. It highlights the importance of conducting thorough due diligence and vetting projects carefully before committing funds. As the dust settles on this controversy, one thing remains clear – the world of blockchain-based gambling is not without its risks, and users must remain vigilant to protect their hard-earned assets.
