Vitalik Buterin addresses ZKasino’s misuse of ‘zero-knowledge’ in $33M scam

Ethereum co-founder Vitalik Buterin said the ZKasino issue is proof that the term “zero knowledge (ZK)” has become well-known in the industry enough to attract abuse by fraudsters.

Buterin’s comments followed revelations that a blockchain-based gambling platform was harsh on its users, resulting in the loss of approximately $33 million worth of Ethereum (ETH).

according to To Mr. Buterin:

“There is nothing “ZK” about ZKasino other than being on zksync. Right? I think we need to adapt. Even “ZK” has now become a mainstream buzzword, with serious scammers adopting it. ”

Notably, the project continues to post to its official account on social media platform X, ignoring community concerns.

Z Casino Ragpull

Concerns about ZKasino surfaced on April 21st when community members realized that a previous promise to refund over 10,500 Bridge Ethereum used for ZKAS token farming had been lifted.

Then on-chain data The company revealed that it was putting users’ ETH into Lido, an Ethereum-based liquid staking protocol.

among them statementZKasino’s team claimed that it acted in the community’s interest by converting all bridged ETH to ZKAS at a discounted rate of $0.055, following a 15-month vesting schedule.

This explanation sparked widespread condemnation and scrutiny from the crypto industry.

Crypto Detective ZachXBT highlighted It highlighted the questionable history of ZKasino founder Ildar Elham, pointing to past incidents such as nonpayment of debts, delays in announcing gifts, evasion of stake payments, and failure to refund users after internal phishing attacks.

Additionally, cryptocurrency developer Cygaar Suspect ZKasino’s blockchain was an Arbitrum Nitro chain that was deployed in 2 minutes. He added that contrary to the project’s claims, the chain lacked zero-knowledge technology or EigenDA.

Investors deny

Following recent events, many investors and supporters of ZKasino have distanced themselves from the project.

MEXC is a prominent exchange supporter of the platform, cancel ZKAS token is scheduled to be listed. MEXC was participating in Protocol’s Series A funding round.

Additionally, venture capital firm Big Brain stated that ZKasino “appears to be fraudulent” and clarified that it had never invested in the project.that Added:

“Although we have never invested in ZKasino, we have been offered a pro-rata token distribution, which we have not received and do not choose to receive.”

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