ZKasino Faces User Outrage After Diverting $33 Million in Refunds to Lido

ZKasino Faces User Outrage After Diverting $33 Million in Refunds to Lido

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April 22, 2024 by Diana Ambolis
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A blockchain-based gambling project called ZKasino has angered its users by sending $33 million of their funds to Lido, a staking protocol, instead of returning it as promised. ZKasino claims the change was necessary because its chain doesn’t use ETH. Users are also unhappy about other changes ZKasino made, including converting user funds to ZKasino
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A blockchain-based gambling project called ZKasino has angered its users by sending $33 million of their funds to Lido, a staking protocol, instead of returning it as promised. ZKasino claims the change was necessary because its chain doesn’t use ETH. Users are also unhappy about other changes ZKasino made, including converting user funds to ZKasino tokens and removing a statement from its website about returning ETH. Some users believe ZKasino is a scam, and the company has not responded to requests for comment.

ZKasino Under Fire for Diverting $33 Million in Promised Refunds

Blockchain gambling project ZKasino is facing a user backlash after allegedly diverting $33 million worth of funds intended for refunds to staking protocol Lido. This move comes after ZKasino had initially promised to return the funds to over 10,000 users who had participated in its network launch.

The controversy stems from ZKasino’s announcement on April 20th regarding their network going live. Users who participated by “bridging” a total of 10,515 Ether (ETH) to the network were expecting to receive their ETH back, as originally promised by ZKasino. However, on-chain data shows the funds were instead transferred to Lido.

Adding fuel to the fire, venture capital firm Big Brain has publicly distanced itself from ZKasino. Big Brain claims they were included in a list of investors for a purported $350 million Series A funding round, but that they “never invested” and “will not opt to receive” any token distribution.

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The situation has left ZKasino users fuming, with accusations of fraud being leveled against the project. The apparent contradiction between the promised refunds and the transfer to Lido has caused significant concern.