After the arrest of a suspected founder of ZKasino last week, millions in staked Ether were returned to the team’s original multi-signature wallet.
On May 9, data from Etherscan revealed that ZKasino‘s team wallet held approximately 10,531 Lido staked Ether (stETH), valued at around $31.4 million based on current market prices. These funds had previously been transferred to private wallets allegedly controlled by at least one project founder, following reports of disabled withdrawals by users.
Binance aided law enforcement in tracking the funds, assisting the Dutch Fiscal Information and Investigation Service (FIOD) in apprehending a suspect late last month. During the arrest, FIOD agents confiscated assets, including a luxury automobile valued at $12 million. Despite the arrest, ZKasino‘s funds continued to be active on-chain, fueling speculation that multiple individuals may be involved in what many consider an exit scam, commonly referred to as a rug pull in the crypto community.
Derivatives Monke Strikes Back: Refuting Claims Against ZKasino
Following the news and the mysterious return of funds to the ZKasino multi-signature wallet, a pseudonymous developer associated with the project, known as “Derivatives Monke” on X, refuted claims made by Binance and the wider crypto community. Derivatives Monke explicitly stated that the allegations were “false and damaging to the ZKasino brand.”
This statement faced significant criticism from users and observers, who accused the cryptocurrency betting platform of breaching the trust of its over 10,000 users. On-chain analytics provider Nansen also questioned Derivatives Monke about why the assets were moved during the Eigenlayer airdrop saga and then returned after the arrest in the Netherlands.
Summary Review: The recent events surrounding ZKasino have stirred controversy and raised concerns within the cryptocurrency community. The return of $31 million in ETH to the team’s wallet following the arrest of a suspected founder has prompted speculation about the project’s integrity and potential involvement in fraudulent activities. While ZKasino has denied accusations of wrongdoing, the circumstances surrounding the movement of funds and the subsequent arrest have fueled skepticism among users and observers. The pseudonymous developer’s defense of the project has faced scrutiny, with questions lingering about the timing and motives behind the asset movements. As the investigation unfolds and more details emerge, it remains to be seen how this incident will impact trust in ZKasino and the broader cryptocurrency ecosystem. Transparency, accountability, and adherence to regulatory standards will be crucial in rebuilding confidence among users and investors alike.
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