29 May

The blockchain-based gambling platform ZKasino has announced a 72-hour refund process to return funds to its investors following accusations of a $33 million rug pull. Despite labeling the refund process as a "2-step bridge back process," some investors remain doubtful about the project's sincerity and intentions.

According to a Medium post on May 28, ZKasino outlined the refund process, allowing "bridgers" to sign up and return their Ether (ETH) at a 1:1 ratio. To qualify for the refund, investors must send back their entire Zkasino (ZKAS) token balance from their original investment address. ZKasino has promised to open a claim portal following a data verification process. 

However, investors choosing the refund option will forfeit any allocated ZKAS tokens and the remaining 14 months of ZKAS release.

Despite the update being posted on ZKasino’s Medium page, concerns have been raised about the authenticity of the refund process. Questions surround the choice of a 72-hour window, and there are worries about the sign-up page potentially being a wallet drainer or scam.

Adding to the skepticism, the Medium post was not shared by ZKasino’s official X account but only by "Derivatives Monke," the builder at the center of the controversy.

Last month, ZKasino faced backlash for failing to return investor ETH as promised after its network launch. Instead, the platform staked $33 million worth of investor funds with Lido, citing changes to their initial plan.

Following the controversy, Dutch authorities arrested one of the suspects believed to be involved in the alleged rug pull – Derivatives Monke. Subsequently, around two-thirds of the stolen funds were returned to the ZKasino multisig wallet. 

Despite denying the rug pull allegations, investors remain wary due to the lack of official communication from ZKasino's main channels and the history of broken promises.

May 2024, Cryptoniteuae

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