ZKasino, a blockchain-based gambling project, has implemented a unique approach to address the allegations of a $33 million “rug pull.” They have introduced a 72-hour “2-step bridge back process” to return funds to investors. In a recent Medium post, 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 reassured everyone of their commitment to the project’s success and their ongoing efforts.
The refund process requires investors, known as “bridgers,” to send back their complete ZKasino (ZKAS) token balance from their original investment address. 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 lose any allocated ZKAS tokens and the remaining 14 months of the ZKAS release.
Some investors have expressed concerns about the 72-hour window for the bridge back process and have raised skepticism about the sign-up page, fearing it may be a potential scam or wallet drainer. It is important to note that the Medium post announcing the refund process was shared by the ZKasino builder, “Derivatives Monke,” who has been at the center of the controversy, rather than the official ZKasino account.
ZKasino faced severe criticism last month for failing to fulfill its promise of returning investor ETH after the network went live. Instead, approximately $33 million worth of 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 with a 15-month vesting schedule. This led many to accuse ZKasino of executing an “exit scam.” One individual suspected of being involved in the “rug pull” was arrested by Dutch authorities, and two-thirds of the stolen funds were returned to the ZKasino multisig wallet.
In April, the cryptocurrency industry experienced a significant decrease in losses from hacks and scams. The combined losses from crypto-related hacks and scams were the lowest since 2021, totaling approximately $25.7 million. Flash loan attacks accounted for $129,000 in losses, while exit scams resulted in $4.3 million lost. This decline in incidents highlights the ongoing efforts to enhance security measures within the industry.
Overall, ZKasino’s implementation of the 72-hour “2-step bridge back process” demonstrates their commitment to addressing the concerns raised by investors. By providing a transparent refund process, they aim to rebuild trust and ensure the project’s success.
