ZKasino, a blockchain-based gambling project, has introduced a unique approach to address the allegations of a $33 million “rug pull.” They have implemented a 72-hour “2-step bridge back process” to return funds to investors. In a recent Medium post, ZKasino announced the initiation of the refund process, allowing investors to participate in the 2-step bridge back process with a 1:1 ratio for bridging back their Ethereum (ETH). ZKasino emphasizes their commitment to delivering a successful project and assures everyone that they are working hard to achieve this goal.
The refund process requires investors, known as “bridgers,” to send back their complete ZKasino (ZKAS) token balance from the original address where they initially invested their Ether. After a thorough data verification process, a claim portal will be opened to facilitate the refund. However, it is important to note that investors who choose to receive their ETH back will forfeit any allocated ZKAS tokens and the remaining 14 months of the ZKAS release.
While some investors have raised concerns about the 72-hour window for the bridge back process, others have expressed skepticism regarding the sign-up page, fearing it may be a potential wallet drainer or scam. It is worth mentioning that the Medium post announcing the refund process was not shared by ZKasino’s official account but by the ZKasino builder known as “Derivatives Monke,” who has been at the center of the controversy.
ZKasino faced significant criticism last month when it failed to fulfill its promise of returning investor ETH after the network went live. Instead, approximately $33 million worth of investor and user funds were sent to Lido for staking. The platform justified this action by stating that changes had been made to the initial plan, converting all bridged ETH into ZKAS at a discounted rate of $0.055 with a 15-month vesting schedule. Many accused ZKasino of executing an “exit scam.” However, following the incident, Dutch authorities arrested one of the individuals suspected of being involved in the “rug pull” on April 29. As a result, around two-thirds of the stolen funds were returned to the ZKasino multisig wallet, and Derivative Monke publicly denied the rug pull allegations.
In other news, the cryptocurrency industry experienced a significant decrease in combined losses from hacks and scams in April. It recorded the lowest combined losses since 2021, with approximately $25.7 million lost to exploits, hacks, and scams. Flash loan attacks accounted for $129,000 in losses, with the largest incident causing $55,000 in damages. This marks the lowest incidence of flash loan attacks since February 2022. Additionally, $4.3 million was lost to exit scams. The first quarter of this year saw $336 million lost to Web3 hackers and fraud, with nearly half of the capital stolen in January alone.