ZKasino’s $31m ETH returned to team wallet after founder’s arrest

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As a long-term crypto investor with a keen interest in the DeFi space, I’ve been closely following the ZKasino saga with a mix of fascination and concern. The recent turn of events has left me feeling a rollercoaster of emotions.

As a crypto investor, I’ve been keeping a close eye on the latest developments regarding ZKasino. Last week, there was a significant turn of events when one of the suspected founders of this decentralized finance (DeFi) project was arrested. Consequently, millions worth of staked Ether that had been previously transferred to their multi-signature wallet via the bridge were returned to their original wallet. This unexpected move has left many in the community pondering about the future implications for ZKasino and its investors.

On May 9th, according to Etherscan’s data, ZKasino’s team wallet contained approximately 10,531 units of staked Ethereum (stETH) from Lido, which equated to around $31.4 million based on current market values. This substantial amount was transferred to supposedly personal wallets of the project’s founders following concerns raised by users when they discovered that withdrawals had been suspended.

Exciting development! The Ethereum tokens previously transferred to the multisign wallet through various bridges have been returned. Could this signify an upcoming restitution plan for Zkasino victims?

— $JAIL (@jail_monke) May 9, 2024

According to crypto.news, I, as a crypto investor, was pleased to learn that Binance played a significant role in assisting law enforcement in their recent investigation. The crypto exchange provided valuable assistance to the Dutch Fiscal Information and Investigation Service (FIOD), which ultimately led to an arrest towards the end of last month.

As an analyst, I’ve come across an intriguing situation where an unidentified individual was apprehended by FIOD agents, resulting in the confiscation of assets worth over $12 million, including a high-end automobile. However, despite this development, transactions involving ZKasino funds have persisted on the blockchain. This ongoing activity has fueled speculation among the crypto community that more than one person could be involved in what is being referred to as an exit scam or rug pull.

ZKasino denies Binance “FUD” 

Following the revelation of the news and the enigmatic restoration of funds to ZKasino’s multi-signature wallet, an anonymous developer linked to the project denied the allegations made by Binance and the wider crypto community. On platform X, this figure going by the alias “Derivatives Monke” unequivocally declared that these assertions were both “unfounded” and “harmful to ZKasino’s reputation”.

For the last three years, we’ve been giving our all to make this project a success. Moving forward, we remain committed to maintaining this level of dedication and hard work.

Derivatines Monke refutes Binance claims

As a crypto investor, I’ve noticed a significant backlash against the cryptocurrency betting platform, Derivatives Monke, following their handling of the recent Eigenlayer airdrop situation. Many users and observers have expressed concerns about broken trust due to the platform moving assets during the airdrop, only to return them after an arrest in the Netherlands. On-chain analytics provider Nansen has also questioned Derivatives Monke regarding this matter.

As a researcher investigating recent transactions on the Eigenlayer blockchain, I’ve come across an intriguing sequence of events. Ten days ago, funds were transferred from a multisignature wallet during a period of notable network activity, which some have referred to as “noise.” However, just six hours ago, those same funds were moved back into the multisig wallet. The reason behind this transactional dance remains unclear and warrants further exploration.

— Nansen 🧭 (@nansen_ai) May 9, 2024

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2024-05-10 09:38