ZKasino Implements 72-Hour "2-Step Bridge Back Process" to Return Funds to Investors

CryptoNews.com

2024-05-28 22:31:17

Ruholamin Haqshanas

Last updated:

May 29, 2024 02:31 EDT | 2 min read

ZKasino, a blockchain-based gambling project, has taken steps to address the allegations of a $33 million “rug pull” by initiating a 72-hour “2-step bridge back process” to return funds to investors.

In a Medium post on May 28, 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).

“The ZKasino team is still working hard to make the project successful. We again want to assure everyone that we are here to deliver and continue our best efforts.”

ZKasino Refund Process Sparks Concern

The refund process requires “bridgers” to send back their complete ZKasino (ZKAS) token balance from the original address where they initially invested their Ether.

After a data verification process, a claim portal will be opened to facilitate the refund.

However, investors who choose to receive their ETH back will forfeit any allocated ZKAS tokens and the remaining 14 months of the ZKAS release.

Some investors have raised concerns about the chosen 72-hour window for the bridge back process, while others have expressed skepticism regarding the sign-up page, fearing it may be a potential wallet drainer or scam.

It is worth noting that the Medium post announcing the refund process was not shared by ZKasino’s official account but rather by the ZKasino builder known as “Derivatives Monke,” who has been at the center of the controversy.

Bridge back ETH at 1:1 ratio

We now initiate the 2-step bridge back process for bridgers who choose to receive back their ETH.

We apologise for the delay and thank you for your patience.

Please read the details about the bridge back process on our Medium post:…

— Derivatives Monke (@Derivatives_Ape) May 28, 2024

ZKasino faced severe 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 uting an “exit scam.”

Following the incident, Dutch authorities arrested one of the individuals suspected of being involved in the “rug pull” on April 29.

Subsequently, around two-thirds of the stolen funds were returned to the ZKasino multisig wallet, and Derivative Monke publicly denied the rug pull allegations.

April Records Lowest Crypto Hack Losses

The cryptocurrency industry experienced a major downturn in combined losses from hacks and scams in April.

The month saw the lowest combined losses from crypto-related hacks and scams since 2021, with approximately $25.7 million lost to exploits, hacks, and scams.

More specifically, only $25.7 million was lost in attacks throughout the month, marking the lowest amount since CertiK began tracking such data in 2021.

Flash loan attacks accounted for $129,000 in losses, with the largest incident causing $55,000 in damages.

This marked the lowest incidence of flash loan attacks since February 2022, and $4.3 million was lost to exit scams.

As reported, the first quarter of this year has seen $336 million lost to Web3 hackers and fraud, with nearly half of the capital stolen in January alone.

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