ZKasino is a DeFi-based platform that has recently been embroiled with controversy. It announced it would return the stolen funds at 1:1 to investors.
Dutch authorities charged the platform with theft of $30 million from user deposits. blog post Investors can claim their money on 28 May. Ethereum Through a newly-introduced “2-step backbridge process.”
This announcement follows the arrest of a 26-year-old Dutch man Earlier in May charges of embezzlement and money laundering were brought against ZKasino. According to reports, the man behind pseudonymous ZKasino Developer X called “Derivatives Monke.”
Dutch authorities have seized assets worth €11.4 million, including real estate, a luxury car, and various cryptocurrencies.
Skepticism remains high
Investor confidence is still low despite ZKasino’s promise to make refunds. Investors are still skeptical about the ZKasino’s sudden offer of a refund and its lack of communication directly with Dutch authorities.
Investors have a limited time period of 72 hours in which to apply for a refund. Skeptics claim that the short period of time may not allow many to recover their deposit and it could also be a scam designed to drain wallets.
Blog posts from the platform did not mention rewards for staking deposits made by users. Onchain records reveal that ZKasino changed investors’ ETH to Lido Wrapped Staked Ether after the Bridge-to-Earn ended.
The estimated staking rewards are over $100,000. This is based on the Lido staking return of 3.3%, and the recent rise in ETH price.
Many community members have asked why they are being required to complete another procedure instead of simply returning their Ethereum.
Other people questioned the authenticity of the blog, its posts on social media and the tweets made by the Derivatives Monke about his refund. They asked how he could be in prison while announcing the refund via Twitter.
Scammers at Zkasino
ZKasino’s problems began when it launched in March. “Bridge-to-Earn” Program that offers rewards to temporarily lock up ETH.
ZKasino, however, withheld about $30 million of deposits when redemption began in April. allegations of fraudulent activity Investors and Dutch authorities should both be able to benefit from this.
ZKasino insists it is a legit operation, but the legal questions, the investor’s skepticism and the announcement about the refunds have raised many more questions.
The crypto community closely monitors the progress of the 72-hour time limit to see if ZKasino keeps its word or causes further problems.
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Source: cryptoslate.com