ZKasino’s Transfer of $33M in Investor and User Funds to Lido Staking Protocol Sparks Controversy

ZKasino Controversy Unfolds

ZKasino, a blockchain-based gambling project, faced backlash after transferring $33 million worth of funds to the staking protocol Lido instead of returning them to investors and users as initially planned.

Changes in ZKasino’s Plan

Following the launch of its network, ZKasino converted 10,515 Ether (ETH) bridged by over 10,000 users to ZKasino (ZKAS) tokens at a discounted rate of $0.055 with a 15-month vesting schedule.

Concerns and Suspicion

Users raised concerns when ZKasino moved all bridged ETH to Lido, citing the need for a smooth transition despite earlier promises. Suspicions were further fueled by allegations that ZKasino’s blockchain lacked promised technologies.

Accusations of Fraud

Accusations of an exit scam surfaced on social media, with users sharing personal information of ZKasino’s founder and calling for legal action. Venture capital firm Big Brain also raised suspicions of fraud, claiming they never received promised token distributions.

Industry Reactions

Despite initial support from crypto exchange MEXC and Big Brain Holdings, both entities distanced themselves from ZKasino. The project’s silence on social media amid the controversy has drawn further scrutiny.

Developments in the Ethereum Network

The Ethereum network recently surpassed one million validators, with 32 million Ether staked, totaling around $114 billion. This significant commitment highlights the growing adoption of Ethereum’s proof-of-stake consensus mechanism.