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ZKasino scam: Users pledge ETH for tokens, forced to hold and lock ZKAS for one year

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ZKasino scam: Users pledge ETH for tokens, forced to hold and lock ZKAS for one year

Web3 gaming project ZKasino promised users to stake ETH for cross-chain transactions, in return for ZKAS tokens. However, after the reward program ended, all descriptions on the platform regarding returning ETH were deleted. Users who staked ETH had their assets converted to ZKAS at a rate of 0.055 USD and locked up for over 15 months.

ZKasino Changes Whitepaper, ETH Staking Turns into Donation

Here is a summary of ZKasino's progress over the past month:

  • 3/19: Announced Series A funding with a valuation of $350 million, with MEXC exchange investing $26 million.

  • 3/24: Testnet deployment, audited by Certik, claimed to have passed pre-audit by ChatGPT.

  • 4/5: Announced that cross-chain ETH staking has reached 10,000 coins, promising further reward enhancements.

  • 4/9: Mentioned that cross-chain staking rewards have increased 2 to 3 times, and ZKAS tokens will be immediately distributed upon mainnet launch.

  • 4/16: End of cross-chain reward period.

Around 4/20, users began to notice that the original description of "returning ETH after mainnet launch" had been deleted as indicated by the red box on the right side.

The whitepaper document also lacks any mention of returning ETH.

Source: Wayback Machine

ZKasino Refutes Rumors

Since 4/20, ZKasino's official Twitter account has been flooded with comments. Despite this, ZKasino remains calm, stating that these are all rumors, and the mainnet launch delay is due to the exchange listing delay.

However, there is no mention of returning ETH.

Users Forced into IDO, ZKAS Locked for 15 Months

Subsequently, ZKasino did launch its mainnet, but users staking ETH across chains were converted to ZKAS at $0.055 each.

For users staking USDT across chains, one coin was converted to ZKAS at $1.

Users can only immediately receive 5% of ZKAS, with the rest locked for over 15 months.

ZKasino also claims to initiate a second round of cross-chain reward programs in the future.

ZKasino Announcement

ZachXBT: Forewarned Long Ago

ZKasino's pinned tweet has received nearly ten thousand comments. Online sleuth ZachXBT commented in the tweet:

I really don't understand why everyone is transferring $30 million to a scammer. I warned everyone about this team back in December last year. If you didn't listen then, don't tag me again. Why do you expect me to talk about this again?

He previously pointed out several "crimes" of ZKasino founder Derivatives Monke:

  1. Owes money to @Pancakesbrah.

  2. ZKasino held a "Giveaway" event, giving away $200,000 to unknown recipients.

  3. Lost a bet to @CL207 and did not pay up.

  4. After the DC channel was hacked, promised to compensate users, but nothing happened.

As of now, ZKasino officials remain unresponsive regarding the ETH repayment issue, and the matter has not escalated to a legal level, leaving users seemingly helpless.

MEXC, also an investor, claims to be a victim as well.