ZKasino Facing Allegations of $32 Million Ethereum Rug Pull
ZKasino, the decentralized gambling network, is currently embroiled in a controversy within the crypto community over concerns of a potential rug-pull scenario. Recent trending posts on social media platforms have highlighted the challenges faced by the network.
ZigZag Exchange Accusations
The platform encountered difficulties after ZigZag Exchange, a decentralized P2P order book exchange, accused ZKasino developers of misappropriating project funds for personal use. Some of the specific allegations include diversion of funds earmarked for project development and failure to compensate developers and contractors.
- ZigZag claimed that the initial funds for building ZKasino were pilfered from the ZigZag Treasury.
- The founders of ZKasino, who are signatories on the ZigZag multisig, allegedly used these funds for personal activities.
- The $40 million ecosystem fund promised by ZKasino is allegedly non-existent and unlikely to be paid out in real currency.
Community Backlash
While many of these accusations initially went unnoticed, members of the crypto community have raised concerns regarding ZKasino’s alleged actions, including reneging on a commitment to return bridged Ethereum.
- Concerns were raised about the platform’s removal of earlier assurances to return bridged Ethereum.
- ZKasino’s fundraising efforts were successful, as evidenced by the accumulation of over 10,500 ETH (approximately $32 million) in the deposit address used for the campaign.
- The ZKasino team dismissed these concerns as FUD and assured that the network would still launch, albeit with delays due to exchange listings.
Impact on Exchanges
The controversy surrounding ZKasino has prompted actions from various exchanges. MEXC exchange has canceled its token listing for the project to protect the interests of its users. Ape Terminal has also stated that it is closely monitoring the situation and will cancel token sales associated with the project if needed.
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