ZKasino Faces Backlash for Misusing $33 Million in User Funds, Sparking Fraud Allegations and Investor Outrage
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
- ZKasino Diverts Funds to Lido: ZKasino, a blockchain gambling platform, redirected $33 million in investor and user funds to the staking protocol Lido, deviating from its initial promise.
- Changes in Token Conversion: The platform converted bridged ETH to ZKasino tokens at a discounted rate on a vesting schedule, causing concern among users.
- Criticism from Users and Analysts: Users expressed outrage over the changes, with an anonymous developer criticizing the technological aspects of ZKasino's blockchain.
- Venture Capital Firm Denounces ZKasino: Big Brain, a VC firm, publicly disassociated itself from ZKasino despite previous claims of investment, leading to further scrutiny.
- Minimal Response from ZKasino: Despite the backlash, ZKasino and its founder have remained mostly silent, with minimal updates and responses provided on the situation.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
