ZKasino Faces Controversy for Moving $33M in Investor and User Funds to Lido Staking Protocol
ZKasino, a blockchain-based gambling project, has found itself at the center of a heated controversy after it abruptly shifted $33 million worth of investor and user funds to the staking protocol Lido.
The move deviated from the project’s initial plan to return the funds to its users.
In a blog post on April 20 , ZKasino announced the launch of its network.
Over 10,000 users had bridged a total of 10,515 Ether (ETH) to the network, hoping to acquire the ZKasino (ZKAS) token.
However, instead of returning the ETH as promised, ZKasino stated that it had made changes to its original plan.
The bridged ETH was converted to ZKAS at a discounted rate of $0.055, subject to a 15-month vesting schedule.
ZKasino justified these changes as a means to facilitate a smooth transition, as its chain did not utilize ETH.
Users also noticed that the project had altered the wording on its website, removing the statement guaranteeing the return of the ETH.
Concerns escalated further when an on-chain transfer revealed that ZKasino had moved all 10,515 ETH from its users into the Lido staking protocol.
1 小时前，一鲸鱼在链上以 $3,083 的价格将 1,575 MKR 出售为 485 万 USDT，然后转入币安。
这 1,575 MKR 是该鲸鱼在 03/13-3/22 期间以 $2,871 的价格买入，如今以 $3,083 的价格售出，获利 $33 万 (+7%)。
另外，该鲸鱼曾在 03/29 以这 1,575 MKR 为抵押品在 Aave 借款 100 万 USDT 以 $1.68… pic.twitter.com/uhxXnMYIPb
— 余烬 (@EmberCN) April 21, 2024
Additionally, a crypto developer known as “cygaar” raised suspicions that ZKasino’s released blockchain was merely an Arbitrum Nitro chain, lacking zero-knowledge technology or EigenDA despite the project’s claims.
On social media platform X, numerous posts from purported ZKasino users who had invested in the project now accuse it of being an exit scam.
Some individuals even
Read more on cryptonews.com
