In a recent turn of events that has sparked widespread controversy within the cryptocurrency community, blockchain-based gambling project ZKasino has redirected $33 million in Ethereum (ETH) — previously promised as refunds to users — to the Lido staking protocol. This decision deviates from ZKasino's initial commitment to return bridged ETH to more than 10,000 users, who had collectively deposited over 10,515 ETH in anticipation of receiving ZKasino's native tokens (ZKAS).
Instead of refunds, users found their ETH converted into ZKAS tokens at a discounted rate of $0.055, with a 15-month vesting period. ZKasino's unexpected change in refund policy, described by the company as a "favor" to ensure a "seamless transition" from ETH, has not been well received by its user base. The alteration was also reflected on ZKasino's website, which previously assured the return of ETH but later removed such claims.
The community's reaction intensified after on-chain data confirmed the transfer of all user ETH to Lido. The blockchain deployed by ZKasino was also criticized for its lack of the promised zero-knowledge technology, further fueling accusations of an exit scam.
Amidst the backlash, venture capital firms and investors expressed their concerns, with some distancing themselves from ZKasino and refuting claims of financial involvement that were previously asserted by the project. As ZKasino faces growing scrutiny and potential legal challenges, the crypto world watches closely, awaiting further developments in this unfolding saga of trust and transparency in blockchain investments.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
