ZKasino Initiates Refund Process Following Accusations of $33m 'Rug Pull' Scam
Summary:
Blockchain gambling venture, ZKasino, has started a 72-hour refund process, a month after being accused of a $33 million "rug pull". The refund requires investors to return their full Zkasino token balance, promising a claim portal after data verification. Investors reclaiming Ether will, however, lose their allocated Zkasino tokens and the outstanding 14 months of token release. This procedure has caused concerns about potential scams. Last month, ZKasino stirred controversy for breaking its promise to refund ETH, triggering accusations of an "exit scam".
ZKasino, the blockchain-driven gambling venture, has announced the start of a 72-hour process to refund its backers, a month following accusations of a $33 million "rug pull". A recent ZKasino Medium post on May 28 detailed a "2-step bridge back process", allowing investors to restore their Ether (ETH) at a 1:1 ratio. ZKasino maintained that the team is steadfastly working towards the project's success. The refund strategy requires backers to return the full Zkasino (ZKAS) token amount from the original address of their initial Ether investment. It is promised that a claim platform will be open once the data verification is wrapped up. However, ZKasino added that investors reclaiming their ETH would lose any allocated ZKAS and the outstanding 14 months of ZKAS release. Despite the update, concerns have arisen if this could turn out to be wallet draining scam. There have been raised questions about the choice of a 72-hour window and possible risks of the sign-up page being a fraudulent scheme. Last month, ZKasino was heavily criticized for not holding up its word to refund the ETH investments after it went live and instead, sent $33 million of backers and user funds to Lido for staking. It was accused of carrying out an "exit scam". Dutch authorities later on April 29, arrested "Derivatives Monke", one of the suspected individuals behind the "rug pull". Then, nearly two-thirds of the misappropriated funds were restored to the ZKasino multisig wallet while Derivative Monke publicly discouraged the rug pull allegations. An announcement was made denying any misinformation about the ZKasino_io project and strongly dismissed allegations from FIOD and Binance that ZKasino performed an "exit scam" or "rug pull".
Published At
5/29/2024 4:47:19 AM
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