Essential Insights
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Partial Refunds Initiated: ZKasino has begun refunding 35% of the funds from its $33 million rug pull, affecting about 2,500 of the 8,000 users.
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Ongoing Legal Investigations: The refunds follow the arrest of a suspect linked to the rug pull, with further repayments expected that could total up to 75%.
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Community Reactions: Mixed responses from the crypto community include skepticism from larger investors while some small depositors celebrate their refunds.
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Transparency Demands: Users are calling for greater transparency regarding remaining funds and audit processes as the founder reassures affected customers of ongoing efforts to reimburse them.
ZKasino Begins Partial ETH Refunds After $33M Scam
ZKasino, a troubled crypto gambling platform, has initiated partial refunds for investors following a $33 million scam. This move marks the first repayments since the incident, which left thousands of users feeling uncertain.
On November 10, the platform’s founder, known as Derivatives Monke, announced that ZKasino has processed refunds for approximately 35% of withdrawal requests. This figure translates to about 2,500 out of 8,000 impacted addresses. Despite this progress, refunds remain complex due to various parties involved. Monke also noted that these amounts might not be final, as potential interest adjustments could still occur.
Moreover, ZKasino plans a second wave of repayments next week. This could increase the total refunds to 75% for affected users. However, larger withdrawals will require Know Your Customer (KYC) verification for legal compliance.
In early 2024, ZKasino launched a “bridge-to-earn” campaign, attracting 10,515 ETH from over 10,000 users. These investors were led to believe that they could earn yields and withdraw their principal at any time. Unfortunately, the platform converted deposits into vested ZKAS tokens and staked the ETH without user consent. This drastic action sparked accusations of a rug pull after the team went silent for over a year.
Investigative efforts later uncovered misrepresentation in ZKasino’s Series A funding, dispelling claims of $350 million support from major players like MEXC and Big Brain Holdings. Additionally, Dutch authorities arrested a suspect tied to the incident on April 29, 2024, seizing assets worth over $12 million.
Community reactions to the refund announcement have been mixed. Many users expressed relief, while larger depositors remained skeptical about the timeline for their reimbursements. One user, alvarzz, captured the sentiment, saying, “ZKasino refunding me was not on my 2025 bingo card.” However, calls for transparency persist. Some community members want audited proof of remaining funds and independent oversight. Veteran trader Eric Cryptoman said he doubted private sale investors would see any recovery, given that ZKasino still holds $25 million.
The founder has asked for patience, assuring all affected customers that their funds will soon be returned. This situation highlights the ongoing challenges within the evolving world of cryptocurrency, emphasizing the importance of transparency and accountability in tech development.
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This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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