ZKasino, a DeFi platform that recently made headlines due to a controversy involving stolen funds, has announced that it will be returning the stolen funds to its investors at a 1:1 ratio. The platform came under fire when Dutch authorities charged it with stealing $30 million in user deposits. In a blog post on May 28, ZKasino revealed that investors can now reclaim their Ethereum through a newly introduced “2-step backbridge process.”
The situation took a turn for the worse earlier in May when a 26-year-old Dutch man linked to ZKasino was arrested on charges of fraud, embezzlement, and money laundering. This man is allegedly the mastermind behind the pseudonymous ZKasino developer X, known as “Derivatives Monke.” Authorities have seized assets worth €11.4 million, including real estate, a luxury car, and various cryptocurrencies.
Despite ZKasino’s promise to return the stolen funds, investor confidence remains low due to the lack of direct communication with Dutch authorities and the sudden refund offer. The platform’s decision to give investors a tight 72-hour window to sign up for the refund process has raised doubts within the community, with skeptics fearing that the brief period may prevent many from recovering their deposits and could potentially be another scam aimed at draining people’s wallets.
The platform’s blog post did not address the staking rewards earned from user deposits. Records show that after the end of the Bridge-to-Earn program, ZKasino converted investors’ ETH into Lido’s Wrapped Staked Ether. With the current Lido staking yield at 3.3% and the recent surge in ETH prices, the staking rewards are estimated to be over $100,000. Some community members have questioned why ZKasino is asking them to go through another process instead of simply returning the Ethereum, while others have raised concerns about the authenticity of the blog and its associated social media posts.
The issues with ZKasino began in March with the launch of the Bridge-to-Earn program, which promised rewards for temporarily locking up ETH. However, when the redemption period arrived in April, ZKasino withheld approximately $30 million in deposits, sparking allegations of fraudulent activity. Despite ZKasino’s claims of operating legitimately, the legal troubles, investor skepticism, and the recent refund announcement have left many unanswered questions.
As the 72-hour deadline for investors to sign up for the refund process approaches, the crypto community is eagerly watching to see if ZKasino will fulfill its promises or if further complications will arise. The situation is fluid and the ultimate resolution remains uncertain, leaving investors and observers in limbo as they wait for the next chapter in the ZKasino saga to unfold.
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