ZKasino to repay users amid scam allegations and Dutch probe

abdelaziz Fathi

Web3 gambling platform ZKasino, which is currently under investigation by Dutch authorities over scam allegations, said its users can now bridge back their ETH at a 1:1 ratio. These funds had been inaccessible for nearly two months.

ZKasino to repay users amid scam allegations and Dutch probe

ZKasino was initially promoted as a decentralized gambling network. However, allegations arose when the platform altered its token redemption policies at the time of its launch, effectively blocking investors from reclaiming their bridged ether tokens—a reversal from what was initially promised.

The sudden policy change affected over 10,000 investors who collectively bridged more than $33 million into the platform, leading to widespread accusations that ZKasino was conducting a rug pull scam.

Earlier this month, Dutch authorities arrested ZKasino CEO on charges of fraud, embezzlement, and money laundering, according to the Fiscal Information and Investigation Service of the Netherlands (FIOD).

As part of the operation, law enforcement carried out a search of the suspect’s residence, seizing both physical and digital records, as well as assets amounting to approximately 11.4 million euros ($12.2 million). These assets comprised real estate holdings and a range of cryptocurrencies.

The FIOD’s statement elaborated that investors were initially assured they could retrieve their investments within 30 days. However, the setup of the smart contract on the blockchain indicated that returning the funds was never intended, a typical indicator of a rug pull scheme.

Now, these investors, referred to as “bridgers,” have been given a limited 72-hour window — from May 28 at 14:00 UTC to May 31 at 14:00 UTC — to register for the reclaim process. The registration requires users to deposit their first received batch of ZKAS bridge rewards back to the platform, forfeiting any future releases of ZKAS tokens scheduled over the next 14 months.

The reclaim process is restricted to the original ETH deposit addresses used to receive the ZKAS bridge rewards. Participants must connect to the ZKasino network via its website, which will automatically verify the original deposit address. During this process, users must deposit their full balance of ZKAS tokens from these addresses, with allowances made for transaction gas fees.

The platform’s founder, Ildar Elham, also known as Derivatives Ape, has a controversial history, having been involved in previous failed crypto projects such as ZigZagExchange and Syncus. This background continues to raise concerns about ZKasino’s operations and the validity of its latest claims.

The Netherlands, a member of the European Union, is part of a trading bloc that recently passed the Markets in Crypto Asset (MiCA) legislation. This EU-wide regulation allows companies to obtain a single license in one EU country and then operate across the entire union.

Read this next

Digital Assets

Gemini Earn users to recover $2.18 billion in crypto payouts

Cryptocurrency exchange Gemini has agreed to pay $50 million worth of digital assets to investors in its Gemini Earn program as part of a settlement with the New York Attorney General (NYAG), announced on Friday.

Fundamental Analysis, Market News, Tech and Fundamental

Global FX Market Summary: British Pound (GBP) Weakness, US Inflation, Euro, USD June 14 ,2024

British Pound weakens due to lower inflation expectations, potential policy changes from Reform Party, and broader economic concerns.

blockdag

Q2 2024’s Top 5 Cryptos to Buy: BlockDAG, Pepe, Toncoin, Solana and Render

Learn about 2024’s Q2 top 5 cryptos. Explore potential high-return and advancements of altcoins like BlockDAG, Pepe, Toncoin, Solana, and Render.

Fundamental Analysis, Tech and Fundamental, Technical Analysis

GBPCAD Technical Analysis Report 14 June, 2024

GBPCAD currency pair can be expected to fall further toward the next support level 1.7250, former strong resistance from last year.

Digital Assets

Binance acquitted of tax evasion in Nigeria, now faces AML charges

Nigeria has dropped tax evasion charges against two Binance executives, Tigran Gambaryan and Nadeem Anjarwalla, after the world’s largest cryptocurrency exchange appointed a local representative to handle court processes related to the allegations.

Digital Assets

Trezor launches new hardware wallet ‘Safe 5’ with fresh security features

Crypto hardware wallet manufacturer Trezor announced on Friday the launch of its latest flagship product, the Trezor Safe 5, featuring upgraded security to promote self-custody of digital assets.

Institutional FX

Tradeweb enhances RFQ trading in bonds and ETFs

“Clients can now leverage predictive analytics and data to unveil deeper insights at the list level, providing them with an unparalleled level of precision throughout every point of the RFQ trading process.”

Industry News

US repatriates $1.4B misappropriated 1MDB funds to Malaysia

1MDB was created to promote economic development in Malaysia, but instead it went to Hollywood, a superyacht, a Monet and Van Gogh, as part of a $4.5 billion money laundering scheme.

Crypto Insider, Web3

What’s New in Web3 in 2024

Is Web3 really the future of the internet? It certainly seems so. In 2024, the momentum behind decentralized technologies, blockchain, and token-based economies will be stronger than ever.

<