Blockchain-based gambling project ZKasino says it has initiated a 72-hour “2-step bridge back process” to return funds to investors a month after it was alleged to have done a $33 million “rug pull.”
“We are now initiating the 2-step bridge back process in which bridgers can sign up and bridge back their ETH at a 1:1 ratio,” ZKasino said in a May 28 Medium post, adding the team hasn’t given up on the project.
“The ZKasino team is still working hard to make the project successful. We again want to assure everyone that we are here to deliver and continue our best efforts.”
The refund process involves having the “bridger” send back their full Zkasino (ZKAS) token balance from the original address they sent their initial Ether (ETH) investment, promising that a claim portal will be opened after a data verification process.
However, any investors wanting their ETH back will forfeit any allocated ZKAS and the remaining 14 months of ZKAS release, ZKasino said.
Some have questioned why they’ve chosen a 72-hour window, while others have shared concerns about whether the sign-up page could be a wallet drainer or scam.
The Medium post has not been shared by ZKasino’s X account, only by the ZKasino builder at the center of the controversy known as “Derivatives Monke.”
Related: How Binance played a key role in arrest of ZKasino scam suspect
ZKasino was slammed last month for breaking a promise to return investor ETH after its network went live. It instead sent $33 million worth of investor and user funds to Lido for staking.
At the time, the platform claimed it “made changes from our initial plan,” with all bridged ETH converted to ZKAS at a “discounted rate of $0.055” on a 15-month vesting schedule.
Many accused the platform of conducting an “exit scam.”
Just over a week later on April 29, Dutch authorities arrested one of the people suspected to be responsible for the “rug pull.”
A few days later, all bridged ETH was returned to the ZKasino multisig wallet as Derivative Monke publicly denied the rug pull allegations on X.
“We regret that misinformation has been spread regarding the ZKasino_io project. We strongly reject FIOD’s and Binance’s claims that ZKasino has committed a so-called ‘exit scam’ or ‘rug pull,’” they wrote.
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Update (May 29, 11:13 am UTC): This article has been updated to correct an inaccuracy that suggested only two-thirds of funds were returned on May 9. All bridged ETH was returned to the original multisig wallet on May 9.