Cryptocurrency venture capital firm Big Brain Holdings said it had never invested in ZKasino, a decentralized gambling network that allegedly defrauded investors when it launched last weekend.
ZKasino was previously presentation $26 million Series A round naming investors including Big Brain and MEXC exchange, in a now-deleted post. Big Brain Holdings claimed that it had received a token distribution offer from ZKasino but would not opt to receive it.
“We have never invested in ZKasino, but we have been offered a proportional token distribution, but we have not received it and will not receive it in the future,” the Big Brain team said. wrote On Sunday The team also added that VCs invested in ZigZag Exchange and its founders joined ZKasino.
ZKasino users plugged in over $33 million worth of Ethereum on the gambling platform to win bonus native ZKAS tokens at launch. The project promised users that bridged ether could be returned upon their request.
However, investors were later disappointed to learn that ZKasino had changed its plans in such a way that users’ Ethereum would be automatically vested in ZKAS tokens instead of being redeemed at the user’s will. The project said the changes were made to ensure a “seamless transition and excellent user experience.”
Nonetheless, ZKasino proceeded with the launch on its own. Release presentation on
Several claims of fraudulent activity by the ZKasino team have already been made by former colleagues. zigzag And blockchain detective ZachXBTThese included claims that the ZKasino team stole money, failed to pay contractors and “giveawayed” event winners.
X’s cryptocurrency community has expressed skepticism about Big Brain’s explanation for ZKasino. multiple users answered Regarding Big Brain’s announcement questioning why the team did not clarify its position prior to the project fraud allegations.
“They’ve been insisting for a long time that when you invested and the team was cheating, you thought about fixing it with everyone. “Something doesn’t make sense.” wrote Commentator for X.
ZKasino and Big Brain did not immediately respond to The Block’s request for further comment.
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