In a surprising turn of events, over $20 million worth of bridged Ether (ETH) has been returned to the blockchain-based gambling project ZKasino’s multisignature wallet. This development comes nearly three weeks after the platform’s founders were accused of an exit scam.
Mysterious Return of ZKasino Funds
On May 9, an X feed dedicated to recovering funds from the ZKasino exit scam announced that approximately $21 million worth of wrapped Lido staking ETH (wstETH) had been returned to the project’s multisignature wallet. This significant return has sparked optimism among investors, who hope to recover their funds as originally promised. The $JAIL feed confirmed the transfer of 6,021 wstETH, which accounts for about two-thirds of the stolen amount, raising the question of whether a refund is imminent.
ZKasino, launched on April 20, had initially promised an airdrop of its native token, ZKAS, to those who bridged ETH to the platform, with a guarantee of returning the ETH. However, instead of fulfilling this promise, the project moved around $33 million worth of bridged Ethereum to the staking protocol Lido Finance, leading to accusations of an exit scam or rug pull. Over 10,000 users who had bridged their assets based on the project’s assurances found themselves at a loss.
Legal Actions and Community Efforts
The situation took a serious turn on April 29, when Dutch authorities arrested a 26-year-old man suspected of being involved in the ZKasino scam. Authorities seized approximately $12.2 million worth of cryptocurrencies, real estate, and luxury cars from the suspect. The suspect was speculated to be the project founder, known pseudonymously as “Derivatives Monke” and identified by blockchain sleuths as Elham Nourzai.
Cointelegraph reported on May 8 that Binance’s on-chain investigations team played a crucial role in leading law enforcement to the arrest. Binance also froze millions of dollars worth of stolen crypto following a seizure warrant from authorities. Despite the arrest, illicit funds continued to move on-chain, indicating that other perpetrators might still be at large. However, the recent return of funds to the project’s multisignature wallet has renewed hope among victims that they may finally see their investments restored.
Conclusion
The return of over $20 million worth of ETH to ZKasino’s wallet marks a significant development in the ongoing saga of the alleged exit scam. While it raises hopes for a potential refund to investors, the situation remains complex with ongoing investigations and the possibility of other attackers still at large. As the crypto community watches closely, the outcome of this case could set a precedent for handling similar incidents in the future.
