Recent investigations by crypto analyst ZachXBT have uncovered a connection between the questionable project White Rock Finance and the fraudulent ZKasino, which siphoned significant funds from investors.
Analysis of Project Links
ZachXBT conducted a detailed on-chain analysis that revealed the White Rock Finance team has ties to the ZKasino operators, including Ildar Ilham, known as 'Prometheus'. ZKasino, which marketed itself as a decentralized gambling platform, raised over $30 million in presale funds before vanishing in April 2024.
Identification and Movement of Funds
ZachXBT found that the funds siphoned from ZKasino were routed through multiple blockchains, including zkSync, Starknet, Ethereum, and Solana. The funds were reportedly transferred through instant exchanges and divided into various channels, including conversion to Monero and trading on high-risk platforms.
Warnings and Potential Consequences
ZachXBT cautioned about the high risk of fraud associated with the $WHITE token. He urged crypto exchanges like MEXC and Gate.io to implement stricter due diligence processes for onboarding projects. He pointed out that the current members of White Rock were previously linked to other dubious projects, such as Syncus and ZigZag, emphasizing the need for increased transparency in the industry.
ZachXBT's investigation raises serious concerns about the reliability of new projects in the cryptocurrency space and highlights the importance of thorough vetting of teams prior to investment.
