The decentralized gambling network ZKasino has hit a rough patch recently, drawing significant attention and criticism within the crypto community over fears of a potential rug-pull scenario.
Numerous trending posts on social media platforms, including X, have highlighted the challenges and controversies surrounding ZKasino over the past day.
The platform’s troubles began when ZigZag Exchange, a decentralized P2P order book exchange, made allegations against ZKasino, accusing its developers of misusing funds intended for project development for personal purposes.
I'm gonna lay this out since it gets worse and worse everyday.
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…
— ZigZag Exchange (@ZigZagExchange) March 23, 2024
ZigZag claimed that ZKasino had misrepresented its funding and failed to compensate several developers and contractors involved in the platform’s development.
According to ZigZag, ZKasino founders, being 3 out of 5 signers on the ZigZag multisig, diverted funds from the ZigZag Treasury for their own activities, including the alleged misuse of the $40 million ecosystem fund that was announced but deemed unlikely to be paid out in real currency.
While some of these accusations initially went unnoticed, they gained traction as crypto community members expressed concerns over ZKasino’s apparent backtrack on returning bridged Ethereum as promised.
The platform’s initial commitment led to successful fundraising efforts, with on-chain data indicating a deposit address accumulating over 10,500 ETH, equivalent to around $32 million. However, ZKasino responded to these concerns, dismissing them as fear, uncertainty, and doubt (FUD).
Despite ZKasino’s reassurances that the network will still launch, delays attributed to exchange listings have contributed to escalating tensions. Notably, the MEXC exchange has canceled its token listing associated with ZKasino, citing user rights and interests protection as the reason. Ape Terminal also announced monitoring the situation and canceling token sales related to the project.
ZKasino IDO Canceled
Stablecoin Claims are now LiveDue to the recent events with ZKasino, the IDO has been canceled. All participants will receive their funds back.
If you opted into the sale, you will be able to claim your stablecoins.
Claims are LIVE HERE on BSC:… pic.twitter.com/iiMVivjcAN
— Ape Terminal (@apeterminal) April 21, 2024
