ZKasino's Suspect ETH Transfer Raises Red Flags, Sparks Legal Threats

ZKasino has transferred $33 million worth of ETH belonging to its users to Lido, changing its initial refund plan, sparking outrage within the community. ZKasino users have expressed their dissatisfaction on X, with some calling the project a scam and others calling for legal action against the team. As major platforms distance themselves from the project, members of the crypto community have doxxed the founder of ZKasino.

ZKasino's $33 Million ETH Transfer to Lido Sparks Outrage and Allegations of Scam

In a controversial turn of events, ZKasino, a blockchain gaming project, has transferred $33 million worth of ETH belonging to its users to the Lido staking protocol, deviating from its initial plan to return the funds.

Community Outcry and Accusations of Fraud

ZKasino's decision has ignited widespread anger among its users on social media platform X, where many have accused the project of being a scam and called for legal action against its team. Some aggrieved individuals have even disclosed the personal information of ZKasino's founder, known as "Derivatives Monke," and demanded justice.

Major Exchanges Distance Themselves

Prior to the ETH transfer, major exchanges such as MEXC and ApeTerminal had planned to support ZKasino's ZKAS token launch. However, following the controversial decision, both exchanges have announced their withdrawal from any involvement with the project.

Rug Pull Claims and Community Anger

ZKasino announced its revised plan in a post on April 20, stating that its network was now live. However, the announcement revealed a significant departure from the initial promise of ETH refunds. The project claimed that it had "made adjustments to our initial plan," converting all transferred ETH into ZKAS tokens at a "discounted rate of $0.055." Only 5% of the tokens would be available at launch, with the remaining 95% subject to a 15-month vesting period.

Many ZKasino users have expressed disbelief and outrage at this decision, claiming that they had been misled into believing that their ETH would be returned. They have accused the project of pulling a "rug pull," a term used to describe the sudden withdrawal of funds from a project.

ZKasino's Controversial Plan

In its announcement, ZKasino stated that the conversion of ETH to ZKAS was intended as a "courtesy" to users who had bridged tokens to participate in the ecosystem. However, the massive disparity between the value of ETH and the discounted ZKAS rate has left many users feeling cheated.

Lack of Transparency and Accountability

Despite the widespread backlash, ZKasino has remained largely silent on the matter. The project has released only a brief update on its Twitter account, addressing the integration of EIP-3074, a technical protocol, without addressing the concerns of its users. Derivatives Monke, the project's founder, has continued to retweet the project's announcements, seemingly unfazed by the controversy.

MEXC Denies Involvement

Following ZKasino's announcement, the cryptocurrency exchange MEXC issued a statement clarifying its limited involvement in the project. MEXC confirmed that it had been an investor in ZKasino but distanced itself from the project's actions. "As an investor, we are also a victim," the exchange stated.

Legal Recourse and Investigations

Some members of the crypto community have suggested that legal action against ZKasino and its team may be necessary to recover the lost ETH. Several victims have reportedly approached law enforcement agencies to investigate the project's activities.

Conclusion

The transfer of $33 million ETH from ZKasino users to Lido without their consent has sparked outrage and allegations of fraud within the crypto community. Major exchanges have disassociated themselves from the project, and ZKasino's lack of transparency and accountability has further eroded trust. As the investigation into the matter continues, it remains to be seen whether ZKasino will be held accountable for its actions and whether the affected users will be able to recover their lost funds.