ZKasino Wallet Gets $20M Ether Return Raises Investor Hope

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As a researcher with a background in blockchain forensics, I’ve seen my fair share of scams and exit strategies in the crypto space. The latest development regarding ZKasino, however, offers a glimmer of hope for those affected by this alleged exit scam.

Approximately $20 million worth of Ether, which had been previously transferred to ZKasino’s wallet through a bridge, has reappeared under puzzling circumstances. This occurrence came to light three weeks following allegations that ZKasino was involved in an exit scam.

Approximately two-thirds of the Ethereum tokens from Zkasino’s $ZKAS bridge have been returned to the multisign wallet. Could this be a sign that they are planning to issue refunds to the affected parties?

— $JAIL (@jail_monke) May 9, 2024

Approximately $21 million in wstETH (wrapped Lido staking Ethereum) has been restored to the project’s wallet as confirmed by a recent update on the $JAIL feed. This development brings renewed optimism for affected investors, as it accounts for approximately 6,021 units of wstETH or roughly two-thirds of the initially missing funds. The news has fueled anticipation and rumors of potential refunds.

Initially, ZKasino attracted users by distributing its ZKAS token through airdrops in exchange for Ethereum bridged to their platform, promising Ethereum returns. However, rather than keeping this promise, the project reportedly rerouted around $33 million towards the Lido Finance staking pool instead.

A refund of funds back to ZKasino’s digital wallet brings optimism to affected users during crypto’s current turbulence. This occurrence contributes an additional $25.7 million to the total crypto scam and hack losses in April, representing a decrease compared to past years.

As an analyst, I can express this by saying: I believe that this recent development marks a promising turn in addressing the issues surrounding ZKasino and strengthening efforts against fraudulent practices within the cryptocurrency market.

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2024-05-09 10:12