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Disgraced ZKasino Offers Limited Time Refunds; Investors Skeptical

Disgraced ZKasino Offers Limited Time Refunds; Investors Skeptical

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ZKasino has launched a 72-hour refund process for investors following accusations of a $33 million rug pull. 

ZKasino Promises Refunds Amid Skepticism

Blockchain-based gambling platform ZKasino has announced a 72-hour window for investors to claim refunds. This decision follows accusations of a $33 million rug pull that surfaced a month ago. Despite the initiative, doubts persist regarding the legitimacy of the refund process and the project's motives.

Refund Process Announcement

In a Medium post, ZKasino outlined its plan to refund investors through what it calls a "2-step bridge back process." This procedure requires investors to bridge with ETH at a 1:1 and return their full ZKasino token (ZKAS) balance from the original investment address. After this, a data verification process will take place before the claim portal is opened.

However, the refund process comes with significant caveats. Investors opting for refunds must forfeit all allocated ZKAS tokens and the remaining 14 months of ZKAS release. 

Investor Concerns and Skepticism

The stringent 72-hour time frame for claiming refunds has drawn criticism and raised concerns about the potential for scams or wallet-draining schemes.

The skepticism is fueled by the fact that the Medium post was shared not by ZKasino’s official X account but by "Derivatives Monke," a controversial figure in the project. This detail has led many to question the authenticity and safety of the refund process. Some investors worry about the short window for claims, while others suspect the sign-up page could be a trap.

Background of the Controversy

ZKasino's troubles began a month ago when it was accused of diverting $33 million in investor funds to staking, rather than returning them as initially promised. The funds were sent to Lido for staking, with the platform justifying the move as a change from their original plan. All bridged ETH was converted to ZKAS at a discounted rate of $0.055, locked in a 15-month vesting schedule.

The controversy intensified when Dutch authorities arrested "Derivatives Monke," one of the individuals allegedly responsible for the rug pull. Shortly after the arrest, approximately two-thirds of the stolen funds were returned to ZKasino's multisig wallet.

In response to the allegations, "Derivatives Monke" publicly denied any wrongdoing. 

Posting on X, they stated, 

"We regret that misinformation has been spread regarding the ZKasino project. We strongly reject FIOD’s and Binance’s claims that ZKasino has committed a so-called ‘exit scam’ or ‘rug pull.’"

ZKasino Under Scrutiny

The 72-hour refund window presents a narrow opportunity for investors to reclaim their funds. However, the skepticism and concerns surrounding ZKasino's intentions and the safety of the refund process highlight the ongoing distrust within the investor community. As the deadline approaches, the effectiveness and honesty of ZKasino's efforts remain under intense scrutiny.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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