ZKasino, the blockchain-based gambling project, has announced a 72-hour “2-step bridge back process” to return funds to investors following allegations of a $33 million “rug pull.” The project stated that investors can sign up and bridge back their ETH at a 1:1 ratio. ZKasino emphasized that the team is still committed to making the project successful and delivering on their promises.
The refund process requires the “bridger” to return their full Zkasino (ZKAS) token balance from the original address they used to invest their ETH. After a data verification process, a claim portal will be opened. However, investors who choose to retrieve their ETH will forfeit any allocated ZKAS and the remaining 14 months of ZKAS release.
Although the update was posted on ZKasino’s Medium page, some individuals have expressed concerns about the possibility of it being a scam or a way to drain wallets. The post was not shared by ZKasino’s official account but by the ZKasino builder, known as “Derivatives Monke,” who has been at the center of the controversy.
ZKasino faced criticism last month when it failed to return investor ETH as promised after its network went live. Instead, it transferred $33 million worth of investor and user funds to Lido for staking. The platform claimed to have made changes to its initial plan, converting all bridged ETH to ZKAS at a discounted rate on a 15-month vesting schedule. Many accused the platform of conducting an exit scam.
Shortly after, Dutch authorities arrested one of the individuals suspected of being involved in the rug pull. Around two-thirds of the stolen funds were later returned to the ZKasino multisig wallet, and Derivative Monke denied the rug pull allegations.
In conclusion, ZKasino has initiated a process to return funds to investors, but concerns and doubts remain within the community regarding the legitimacy of the refund process.