{"id":12784,"date":"2024-04-22T10:36:30","date_gmt":"2024-04-22T07:36:30","guid":{"rendered":"https:\/\/forklog.com\/en\/zkasino-accused-of-misappropriating-33-million-in-user-funds\/"},"modified":"2024-04-22T10:36:30","modified_gmt":"2024-04-22T07:36:30","slug":"zkasino-accused-of-misappropriating-33-million-in-user-funds","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/zkasino-accused-of-misappropriating-33-million-in-user-funds\/","title":{"rendered":"ZKasino Accused of Misappropriating $33 Million in User Funds"},"content":{"rendered":"<p>The developers of blockchain casino ZKasino <a href=\"https:\/\/etherscan.io\/tx\/0xd6fa04a3465bd81d4df7e4f51c0ea9ecbc3264ef950cbc4a519caa642a217402\">transferred<\/a> 10,515 ETH, valued at $33.9 million, to the Lido staking protocol instead of returning these funds to users and investors.<\/p>\n<p>Ethereum was deposited by early project participants through a bridge for farming the native token ZKAS. The project team had promised that they would be able to reclaim the sent assets.<\/p>\n<p>However, in an <a href=\"https:\/\/zkasino.medium.com\/the-zkasino-network-goes-live-f39dfa1f740a\">announcement<\/a> on April 20, ZKasino declared the launch of its network and &#8220;changes to the initial plan.&#8221; All received ETH was allegedly converted into ZKAS at a &#8220;reduced rate of $0.055&#8221; with a 15-month vesting period.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;This conversion is done as a favor to our users who joined the ecosystem,&#8221; the blog stated.<\/p>\n<\/blockquote>\n<p>The developers also altered the wording on their <a href=\"https:\/\/web.archive.org\/web\/20240404163458\/https:\/\/bridge.zkasino.io\/\">website<\/a>, removing the statement that mentioned the return of ETH.<\/p>\n<p>Analysts from EmberCN highlighted the suspicious transfer of funds to Lido.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"zh\" dir=\"ltr\">8 \u5c0f\u65f6\u524d\uff0cZKasino \u5c06\u7528\u6237\u6865\u63a5\u5b58\u5165 ZKasino \u7684 10,515 ETH($33.18M) \u8f6c\u79fb\u5230 0x791 \u591a\u7b7e\u5730\u5740\uff0c\u7136\u540e\u5b58\u8fdb Lido \u751f\u606f\u53bb\u4e86?<a href=\"https:\/\/t.co\/k15pZ8a6DW\">https:\/\/t.co\/k15pZ8a6DW<\/a><\/p>\n<p>\u8fd9\u4e9b ETH \u662f\u7528\u6237\u6865\u63a5\u5b58\u5165 ZKasino \u6316\u77ff\uff0c\u7ed3\u679c ZKasino \u9879\u76ee\u65b9\u4e00\u62db\u4fee\u6539\u5b98\u7f51\u8bf4\u660e\uff0c\u5f3a\u884c\u5c06\u7528\u6237\u5b58\u6b3e\u7684 ETH \u6362\u6210\u4e86\u4ed6\u4eec\u7684\u5e73\u53f0\u4ee3\u5e01? <a href=\"https:\/\/t.co\/1F9OUPB5Pt\">pic.twitter.com\/1F9OUPB5Pt<\/a><\/p>\n<p>\u2014 \u4f59\u70ec (@EmberCN) <a href=\"https:\/\/twitter.com\/EmberCN\/status\/1781887330531561832?ref_src=twsrc%5Etfw\">April 21, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;ETH was deposited by ZKasino users for farming. As a result, the project team changed the official site description and forcibly exchanged ETH for their platform token,&#8221; researchers explained.<\/p>\n<\/blockquote>\n<p>Web3 developer known as cygaar revealed that the launched ZKasino is &#8220;an Arbitrum Nitro chain, deployed in two minutes.&#8221; Moreover, the protocol does not use zero-knowledge proofs or EigenDA, despite the team&#8217;s <a href=\"https:\/\/twitter.com\/ZKasino_io\/status\/1765044699587342540\">claims<\/a>.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The funniest part of the Zkasino drama is that the chain they released has no zk tech in it at all (nor does it use EigenDA).<\/p>\n<p>It&#8217;s an Arbitrum Nitro chain that took 2 minutes to deploy.<\/p>\n<p>They put ZERO effort into scamming everyone lmao. <a href=\"https:\/\/t.co\/VkKYZWttGl\">pic.twitter.com\/VkKYZWttGl<\/a><\/p>\n<p>\u2014 cygaar (@0xCygaar) <a href=\"https:\/\/twitter.com\/0xCygaar\/status\/1782043339744809044?ref_src=twsrc%5Etfw\">April 21, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Meanwhile, investors and users of platform X have posted numerous warnings about a scam. Venture firm Big Brain stated that it never invested in ZKasino, which it perceives as fraudulent.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Big Brain Holdings invested into the <a href=\"https:\/\/twitter.com\/ZigZagExchange?ref_src=twsrc%5Etfw\">@zigzagexchange<\/a> project in 2022, which subsequently resulted in financial losses for us. Some of the previous founders of that project are now part of the <a href=\"https:\/\/twitter.com\/ZKasino_io?ref_src=twsrc%5Etfw\">@ZKasino_io<\/a> team, which appears to be fraudulent. <\/p>\n<p>We have never invested in ZKasino\u2026<\/p>\n<p>\u2014 Big Brain Holdings (@BigBrainVC) <a href=\"https:\/\/twitter.com\/BigBrainVC\/status\/1782024980013703594?ref_src=twsrc%5Etfw\">April 21, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;Big Brain Holdings invested in ZigZag Exchange in 2022, which subsequently resulted in financial losses for us. Some of the co-founders of that project are now part of the ZKasino team, which appears to be unscrupulous,&#8221; the company noted.<\/p>\n<\/blockquote>\n<p>In one thread, the alleged founder of ZKasino, known as Derivatives Monke, responded to a user&#8217;s message about being &#8220;sued for stealing $30 million.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">You&#8217;re a 60 year old boomer hanging out with 20 year old kids.<\/p>\n<p>\u2014 Derivatives Monke (@Derivatives_Ape) <a href=\"https:\/\/twitter.com\/Derivatives_Ape\/status\/1781786712764494010?ref_src=twsrc%5Etfw\">April 20, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>&#8220;You&#8217;re a 60-year-old boomer hanging out with 20-year-old kids,&#8221; he wrote.<\/p>\n<\/blockquote>\n<p>The ZKasino team has made no further statements regarding the situation.<\/p>\n<p>Back in March, the price of the Candy token <a href=\"https:\/\/u1f987.com\/en\/news\/lena-network-denies-2-9-million-rug-pull-allegations\">plummeted by 87%<\/a> following a suspected <span data-descr=\"the practice of inflating the value of a created token in a liquidity pool followed by a sudden withdrawal of funds; subsequently, other pool participants are left with devalued assets\" class=\"old_tooltip\">rug pull<\/span> by Lena Network developers. The incident occurred hours before the project announced it was relinquishing ownership of the coin&#8217;s contract.<\/p>\n<p>In February, developers of RiskOnBlast\u2014a gaming platform on the L2 Blast network\u2014<a href=\"https:\/\/u1f987.com\/en\/news\/developers-of-riskonblast-execute-1-25-million-rug-pull-in-blast-network\">withdrew<\/a> 420 ETH belonging to users, worth approximately $1.25 million, and disabled the website and social media.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The developers of blockchain casino ZKasino transferred 10,515 ETH, valued at $33.9 million, to the Lido staking protocol instead of returning these funds to users and investors. Ethereum was deposited by early project participants through a bridge for farming the native token ZKAS. The project team had promised that they would be able to reclaim [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":12783,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[44,1246],"class_list":["post-12784","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cybercrime","tag-scammers"],"aioseo_notices":[],"amp_enabled":true,"views":"36","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/12784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=12784"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/12784\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/12783"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=12784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=12784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=12784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}