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ZKasino, a DeFi platform recently embroiled in controversy, announced that it will return stolen funds to its investors in a 1:1 ratio.
The platform, which was recently accused by Dutch authorities of stealing $30 million in user deposits, said in a statement Blog post on May 28 so that investors can regain their rights Ethereum (ETH) through the newly introduced “two-step backbridge process.”
This announcement comes after A 26-year-old Dutch man was arrested He was linked to ZKasino earlier in May on charges including fraud, embezzlement and money laundering. He was reportedly the man behind the pseudonymous ZKasino DeveloperMonk derivatives“.
Dutch authorities seized assets worth €11.4 million, including real estate, a luxury car and several cryptocurrencies.
Doubts remain high
Despite ZKasino’s commitment to refunds, investor confidence remains low. The lack of direct contact with the Dutch authorities and the sudden refund offer raised many doubts in the community.
The most important of which is that the platform gave investors a 72-hour window to register for the refund process. Skeptics say this brief period could prevent many from recovering their deposits and could be another scam aimed at draining people’s wallets.
The platform’s blog post did not address the accumulated bonuses earned from user deposits. Onchain records indicate that after the Bridge-to-Earn program ended, ZKasino converted investors’ ETH into Lido’s Wrapped Staked Ether.
Given Lido’s current yield of 3.3% and the recent rise in ETH prices, the resulting staking rewards are estimated at over $100,000.
Many community members wondered why the exchange was asking them to make another transaction instead of just returning the Ethereum.
Others questioned the authenticity of the blog and associated social media posts, wondering how the derivatives monk was tweeting about recovering money from the confines of prison.
Zakasino scam
Problems with ZKasino began in March when the platform launched a “Bridge-to-Earn” program, promising rewards for temporarily locking ETH.
However, when the redemption period arrived in April, ZKasino withheld nearly $30 million in deposits, resulting in Allegations of fraudulent activity From investors and Dutch authorities.
ZKasino maintains that it operates legally, but a combination of legal issues, investor skepticism and a recent refund announcement has left many questions unanswered.
As the 72-hour deadline approaches, the cryptocurrency community is closely watching whether ZKasino will deliver on its promises or if more complications arise.
