Crypto Betting Platform ZKasino.io Accused of Rugpull, Millions in ETH Withdrawn

The post Crypto Betting Platform ZKasino.io Accused of Rugpull, Millions in ETH Withdrawn appeared first on Coinpedia Fintech News

The mysterious disappearance of the cryptocurrency betting platform ZKasino.io came to light recently, as the operation team executed a rug pull and left the users with a loss and vast sums of invested capital missing.

The accusations arose after Cyvers Alerts, a renowned voice in the cryptocurrency community, sent a tweet with shocking information on the platform’s vanishing without any trace.

Based on the information by Cyvers Alerts, the platform used the users’ invested funds to generate their cryptocurrency, the $ZKAS token through farming. Token farming is a practice where new tokens are minted and distributed as rewards, typically for participating in certain activities on the platform, like staking or lending. 

ALERTThe crypto betting platform @ZKasino_io executed a rugpull on users' invested funds to generate their $ZKAS token through farming!

On 2024-04-20, 10,5K $ETH $33M has been withdrawn from @ZKasino_io account to a #safe address at https://t.co/odFAYcvUs6

All the ETH that… pic.twitter.com/HfR6w1Vq2i

— Cyvers Alerts (@CyversAlerts) April 22, 2024

The notable crash as the rug pull resulted in more than a million dollars worth of Ethereum (ETH) disappearing from users’ accounts.

On April 20, 2024, about 10,500 ETH,  worth $33 million by the time of the transaction was bafflingly transferred out of ZKasino.io’s account to what appears to be a safe address. The instant transfer of such an amount aroused active resistance among the investors and users of the platform.

It was also revealed that all communication channels linked to ZKasino.io, including Telegram and Discord had been closed down arbitrarily. The platform’s absence makes it impossible for users to access their funds.

The case raised anger and condemnation among the crypto community with a huge number of users expressing disappointment and aggravation due to the rumours on Rugpull. The sudden shutting down of ZKasino.io caught attention to the risks accompanying the investment in a decentralized platform with the importance of having strong due diligence before joining such projects.

The uproar from the ZKasino.io rug pull remains ongoing. It emphasises the innate dangers signaling that the cryptocurrency market is not devoid of such risks. Investors are prescribed to be aware and guarded while they interact with decentralized platforms and are anticipated to look for projects with transparent committees and evidenced track records.