The world of cryptocurrency is buzzing with rumours of a potential scam pulled by the decentralized Zkasino dedicated gambling system. The allegations first appeared in March, when decentralised P2P order book exchange Zigzag accused Zkasino of diverting funds intended for personal use.
ZKasino is accused of fraud
According to Zigzag, Zcasino misled its customers by providing false information about its finances and failing to pay employees and some of those who worked on its development Charges also allege that the founders of the platform, who are three of the five signatories to the Zigzag Bahusig, used the money for their purposes. As ZigZag alleged, “The initial funds used to build ZKasino were stolen from ZigZag’s coffers. The founders of ZKasino, 3 of the 5 ZigZag multi-sig signatories, used the funds for their private purposes.”
I'm gonna lay this out since it gets worse and worse everyday.
— ZigZag Exchange (@ZigZagExchange) March 23, 2024
Multiple people have approached me in the past week with allegations that the @ZKasino_io team owes them money or defrauded them in some way.
Multiple former employees and contractors have contacted me to let me…
The $40 million promised ecosystem fund is questionable and probably not.” materialise in real foreign currencies.” These comments didn’t get much attention until ZKasino users voiced their concerns over the platform’s perceived violation of past commitments to pay bridged Ethereum.
🚨ALERT🚨The crypto betting platform @ZKasino_io executed a rugpull on users' invested funds to generate their $ZKAS token through farming!
— 🚨 Cyvers Alerts 🚨 (@CyversAlerts) April 22, 2024
On 2024-04-20, 10,5K $ETH $33M has been withdrawn from @ZKasino_io account to a #safe address at https://t.co/odFAYcvUs6
All the ETH that… pic.twitter.com/HfR6w1Vq2i
Consequences of Suffering
Meanwhile, cryptocurrency trading platform MEXC has clarified that it was unaware of the rug-pulling scheme and was also caught in the fraud. Furthermore, Major Mind Holdings, a new investor, revealed its 2022 investment in the Zigzag Exchange project. He later exposed financial losses by not investing directly in ZKasino Even Major Mind Holdings noted that many of the founders of Zigzag are now part of the ZKasino group, indicating a time of fraudulent activities With the situation persisting, many organisations try ZKasino Crypto Casino crashes, leaving players empty-handed.
Similar to this event, there are multiple events taking place, especially those linked to rug pulling. according to a recent statement made by the authorities of Hong Kong, the number of people arrested under rug-pulling charges is increasing day by day at the JPEX Exchange compared to the previous year’s record. This includes the number going straight forward to 72 suspects, along with JPEX executives.
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