ZKasino Offers 72-Hour ETH Return Following $33M Scandal

ZKasino, a cryptocurrency gambling platform, has recently launched a 72-hour initiative allowing investors to retrieve their ETH at a 1:1 ratio amidst ongoing scam investigations. This bridge back process comes in the wake of allegations that the platform defrauded investors of approximately $33 million through a deceptive practice known as a rugpull.

What is ZKasino?

ZKasino is an online casino platform that leverages blockchain technology, specifically the zkSync layer 2 scaling solution for Ethereum. By utilizing zkSync, ZKasino aims to offer faster transaction speeds and lower fees compared to traditional blockchain casinos, enhancing the user experience with more efficient and cost-effective gameplay.

The $33M Rugpull Allegation on ZKasino

Previously, ZKasino had attracted considerable investment by promising high returns and quick fund recovery. Investors were promised that their bridged ETH would be returned within 30 days, a commitment that was never fulfilled. 

Instead, funds were converted into ZKAS tokens under contentious circumstances, leading to widespread allegations of fraud. The involvement of Binance’s Crime Compliance and Investigations team played a pivotal role in uncovering the scam, leading to the arrest of a suspect by the Dutch Fiscal Information and Investigation Service (FIOD) on April 29. The arrest exposed a broader scheme involving fabricated endorsements and misleading promises, which culminated in seizing assets worth 11.4 million euros.

72 Hours 2-Step Bridge Back Process

ZKasino has initiated a “2-step bridge back process” effective from May 28 at 14:00 UTC to May 31 at 14:00 UTC. During this period, investors are required to register and return their initial batch of ZKAS tokens to regain their ETH. However, this process mandates forfeiting any future ZKAS token releases scheduled over the next 14 months. Concerns have been raised about the authenticity of the bridge back page, sparking fears it could be another scam attempt.