ZKasino, a blockchain-based gambling project, has recently faced allegations of a $33 million “rug pull” but has taken steps to address this by initiating a 72-hour “2-step bridge back process” to return funds to investors. The project announced the refund process on May 28, allowing investors to participate in the process with a 1:1 ratio for bridging back their Ethereum (ETH). Despite the controversy, ZKasino reassured investors that they are working hard to make the project successful and continue their best efforts to deliver.
The refund process requires investors to 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. However, 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 raised concerns about the 72-hour window for the bridge back process and the legitimacy of the sign-up page, fearing it may be a potential scam.
ZKasino faced severe criticism when it failed to return investor ETH after the network went live, resulting in approximately $33 million worth of investor and user funds being sent to Lido for staking. The platform defended this action by stating changes had been made to the initial plan, converting all bridged ETH into ZKAS at a discounted rate with a vesting schedule. Many accused ZKasino of executing an “exit scam,” leading to the arrest of one individual suspected of being involved in the “rug pull” on April 29 and the return of two-thirds of the stolen funds to the ZKasino wallet.
In April, the cryptocurrency industry experienced the lowest combined losses from hacks and scams since 2021, with approximately $25.7 million lost to exploits, hacks, and scams. The month saw a decrease in flash loan attacks, with only $129,000 in losses reported. Additionally, $4.3 million was lost to exit scams. The first quarter of 2024 saw significant losses to Web3 hackers and fraud, with nearly half of the capital stolen in January alone. Despite these challenges, the industry continues to evolve and adapt to address security concerns and protect investor funds.
In conclusion, ZKasino’s response to the allegations of a “rug pull” demonstrates their commitment to addressing investor concerns and taking steps to rectify the situation. The refund process initiated by the project aims to return funds to investors through a 2-step bridge back process. While some investors have expressed skepticism about the legitimacy of the process, ZKasino is working to rebuild trust and continue their efforts to make the project successful. The cryptocurrency industry as a whole has faced challenges in terms of security and scams, but efforts to combat these issues have led to a decrease in losses in recent months. Moving forward, it is essential for projects like ZKasino to prioritize transparency, accountability, and investor protection to ensure the long-term success of blockchain-based initiatives.
