ZKasino Faces Scrutiny: Users Unable to Withdraw Funds, Official Telegram Gets Banned Amid Accusations of Fraud

On Apr 22, 2024

Crypto gambling platform ZKasino turns suspicious, the majority of the big Crypto players deny any direct association with this platform.

ZKasino is a crypto betting platform that offers users the opportunity to engage in online gambling using cryptocurrency. However, recent issues have arisen regarding fund withdrawals and the platform’s integrity, prompting scrutiny and concern among its user base.

Since last week, the users of this crypto gambling platform have been unable to withdraw their funds and also the ZKasino team removed the sentence “Ethereum will be returned and can be bridged back” in its bridge interface Bridge funds.

So far ZKasino’s deposit (0x91…Be45) has reached more than 10,500 ETH, worth US$32 million and this fund was transferred by the ZKasino team to Lido.

ZKasino removed the sentence "Ethereum will be returned and can be bridged back" from its website

Source: https://t.co/fPWkks0YDx pic.twitter.com/zINLS4ee7a
— Bitcoinik (@Bitcoinikdotcom) April 22, 2024

In response to multiple fraud reports, the official Telegram account was also banned by the Telegram team.

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Big Brain Holdings: we invested into the ZigZag in 2022, which is a financial loss. Some of the previous founders of ZigZag are now part of the ZKasino, which appears to be fraudulent. We have never invested in ZKasino but were offered a pro-rata token distribution that we have… https://t.co/Bf9mhxj86f
— Wu Blockchain (@WuBlockchain) April 21, 2024

Many people alleged that the MEXC crypto exchange was the main partner of this gambling platform but the MEXC exchange officially denies all such allegations and said that they were only one of the investors but now in this situation, they’re not going to give support to this platform.

MEXC also said it will postpone the listing and withdrawal of ZKasino (ZKAS). As a result, the deposit of ZKAS will also be temporarily suspended.

MEXC said: We are just one of the investors, and the behavior of the project side has nothing to do with us. As investors, we are also victims. ZKasino previously announced the completion of Series A financing at a valuation of US$350 million, with participation from MEXC, Big… https://t.co/srjuOaNl8U
— Wu Blockchain (@WuBlockchain) April 21, 2024

Big Brain Holdings, a venture capital firm that invests in cryptocurrency-related projects, including pre-seed, seed, and early-stage investments, disclosed that they have no relationship with ZKasino.

They said that they invested in a crypto project called ZigZag back in 2022, but that ended up being a loss. And also disclosed that some of the original creators of ZigZag are now involved with ZKasino, which seems shady.

Furthermore, they added that they didn’t invest in ZKasino, but in the past they received offers of investment in return for tokens.