ZKasino, a blockchain-based gambling project, has announced a 72-hour “2-step bridge back process” to return funds to investors following allegations of a $33 million “rug pull” in April. The company has denied attempting to abscond with investor funds and is now providing a short refund window.
Refund Process Explained
In a Medium post dated May 28, ZKasino outlined the process for investors to reclaim their funds. Investors must send back their full ZKasino (ZKAS) token balance from the original address used to send their initial Ether investment. Following a data verification process, a claim portal will be opened for refunds, ensuring that ETH is returned at a 1:1 ratio.
However, investors opting for this refund will forfeit any allocated ZKAS and the remaining 14 months of ZKAS release. ZKasino emphasized that the team is still committed to the project’s success, stating, “We are here to deliver and continue our best efforts.”
Investor Concerns and Skepticism
Despite the announcement, there are concerns among investors. Some question the rationale behind the 72-hour window, while others worry that the sign-up page could be a scam or a wallet drainer. The refund update was posted on ZKasino’s Medium page but has not been shared on the project’s official X (formerly Twitter) account, raising further suspicions.
Also Read: $68 Million in Wrapped Bitcoin Stolen in High-profile Crypto Scam
Background and Controversy
Last month, ZKasino faced backlash for failing to return investor ETH after its network launch, instead sending $33 million worth of funds to Lido for staking. The platform claimed it made changes from its initial plan, converting all bridged ETH to ZKAS at a discounted rate of $0.055 on a 15-month vesting schedule. This move led many to accuse ZKasino of conducting an “exit scam.”
The situation escalated on April 29 when Dutch authorities arrested an individual suspected of being involved in the alleged rug pull. Shortly after, approximately two-thirds of the stolen funds were returned to the ZKasino multisig wallet. Derivative Monke, a central figure in the controversy, publicly denied the rug pull allegations on X, stating, “We strongly reject FIOD’s and Binance’s claims that ZKasino has committed a so-called ‘exit scam’ or ‘rug pull.’”
ZKasino’s efforts to refund investors mark a significant attempt to restore trust in the project. However, the short refund window and ongoing skepticism highlight the challenges the platform faces in regaining investor confidence.
