The ZKasino project was accused of rug pull for $32 million

  • The ZKasino project team raised 10,515 ETH for the farming of ZKAS tokens.
  • Approximately $32 million worth of funds were transferred to another address.
  • The team closed their Telegram channel and prevented users from withdrawing their funds.

Reports have emerged suggesting that the decentralized gambling network ZKasino may have engaged in fraudulent activities against its users. Analyst Colin Wu revealed that the project team had collected 10,515 ETH before abruptly shutting down their Telegram channel and blocking users from withdrawing their funds.

In light of these developments, the MEXC crypto exchange has canceled the listing of ZKAS tokens, and the Ape Terminal platform has canceled the initial coin offering (IDO). Additionally, the IDO platform Ape Terminal has assured all participants that they will receive refunds. Etherscan data confirms that the user assets totaling over $32 million were transferred to another address and subsequently sent to the Lido Finance liquid staking protocol.

This incident follows accusations made by representatives of the decentralized exchange ZigZag, who claimed that ZKasino had provided false information about its funding and failed to pay its developers. In March 2024, ZigZag made allegations against ZKasino, marking the start of the platform’s troubles.

Earlier this month, similar incidents unfolded with the CONDOM project, facing accusations of rug pulling for nearly $1 million, and the LENA Network, which was involved in a similar incident amounting to $2.8 million.