ZKasino, a blockchain casino project, is embroiled in controversy, accused of stealing tens of millions of dollars from users. Meanwhile, the crypto market is facing significant liquidations.
Accusations Against ZKasino
ZKasino has been accused by analysts of transferring 10,515 ETH, worth $33.9 million, to the Lido staking protocol instead of returning the funds to investors. Initially, the project caught attention by announcing a $350 million funding round, securing $26 million from investors including the MEXC exchange. Shortly after launch, users noticed changes to the refund policy.
Liquidations in the Crypto Market
Major liquidations have occurred in the crypto market amidst falling Ethereum and Bitcoin prices. A large Ethereum holder was subjected to liquidation of a 67,570 ETH position worth $106 million on the Sky platform. Liquidations in the options market reached $1.43 billion, affecting more than 461,600 traders.
Community Reaction and Conclusions
The crypto investor community reacted negatively to the situation with ZKasino, accusing the project of a known type of exit scam. Some users began circulating personal information of the project's founder, calling for legal action. In parallel, the venture company Big Brain distanced itself from the project, highlighting its questionable nature.
The situation with ZKasino highlights the risks and pitfalls that blockchain and cryptocurrency investors face. The turmoil in the market also raises questions about the reliability of new projects.
