ZKasino offers deposit refunds amid scam allegations

Platform users have only 72 hours to claim their funds

It is undeniable that the ZKasino project has been a hot topic of discussion recently following allegations such as rug-pulling. As a result, ZKasino has decided to offer refunds within 72 hours following claims that it withdrew $33m unlawfully.

The process itself will involve converting Ether (ETH) into ZKasino (ZKAS) tokens at a given 1:1 rate. This is the first step in a two-step bridge process, according to ZKasino. It should be noted though that such exchange attracts forfeiture of any allocated ZKAS tokens as well as the remaining release periods.

While the platform continues to reassure its stakeholders regarding its unwavering commitment to making sure everything works out fine for them, distrust still looms large.

Notably, the information did not come from ZKasino’s official social media channels but from Derivatives Monke who claims to be the builder behind ZKasino. This further gave rise to worries over possible scams or wallet draining.

Last month, authorities had to intervene after investors discovered that funds had been moved to another smart contract contrary to what the platform committed to previously. Dutch police authorities even made an arrest of a 26-year-old man in connection with an investigation into the alleged ZKasino scam.

The Fiscal Information and Investigation Service (FIOD) informed that they had seized over €11.4m in various assets such as cryptocurrencies, real estate properties, and luxury vehicles.

Meanwhile, ZKasino still maintains its integrity and denies any rug pull and scam accusations.

This latest ZKasino move has created more questions than answers, especially considering that ZKasino has not been communicating directly with the relevant authorities. Criticism has also been directed toward the narrow 72-hour window that the platform has offered for deposit recovery as many will not be able to reclaim their funds in such a short time span.   

Additionally, people are concerned that ZKasino has not mentioned anything about the staking rewards earned from user deposits.

ZKasino began attracting attention back in March when it announced its “Bridge-to-Earn” program which gave people a promise of handsome returns if they could lock up some ETH. However, after the designated period of 30 days, no returns materialized, while ZKasino kept about $30m worth of deposits. Naturally, this prompted scam allegations.

Senior blockchain scientist Hakan Unal from Cyvers.ai analyzed in detail how the ZKasino discrepancies came about and offered advice to investors on how to notice and steer away from any suspicious crypto projects.

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Written by Silvia Pavlof

Silvia has explored various forms of writing, ranging from content creation for social media to crafting movie scripts. Drawing on her experience as a journalist specializing in the gambling sector, she is currently investigating the impact of cryptocurrencies and blockchain on traditional gambling and iGaming.

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