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Investors have created a telegram called the “ZKasino Legal Task Force” to prosecute the co-founders of gambling blockchain infrastructure ZKasino after they exchanged nearly $33 million worth of Ether (ETH) for its native token. According to Rekt News, after the exchange, the co-founders went dark and their group began banning users who suggested the possibility of an exit scam being run.
But tensions quickly escalated as several members talked about the possibility of hiring assassins to track down the project’s co-founders.
The controversy began on March 23 when ZigZag Exchange founder Kedar Iyer posted on As noted in the same publication, Monke and two other co-founders were part of the ZigZag team and signatories of the Treasury’s multi-signature wallet, and reportedly stole funds to start new ventures.
Decentralized blockchain-based fundraising group BlackDragon said it wanted to invest in ZKasino, adding more information to a post on April 23. However, BlackDragon’s due diligence team stated that the investment did not go through because members of the ZKasino team did not react well to having their appearances revealed.
Regarding recent dramas @ZKasino_io The man who scammed investors out of $35 million – we wanted to invest months ago but skipped it because the ZKasino team went crazy while doing basic due diligence to protect members and investors.
Check out the screenshot below. pic.twitter.com/q20HqOInvs— Black Dragon (@BlackDragon_io) April 23, 2024
In another post, the BlackDragon team explained that they attempted to alert fellow venture capital funds and the community, but they still invested significant amounts of money into ZKasino.
A user identifying himself as Cygaar took to X to highlight that ZKasino’s underlying blockchain infrastructure does not apply zero-knowledge technology as advertised by the team. Instead, it deployed a blockchain based on Arbitrum Nitro’s architecture that, according to Cygaar, takes two minutes to build.
Moreover, the current situation of ZKAS, the native token of ZKasino, is still uncertain. Investors who purchased ZKAS during the pre-sale period have not yet received their tokens.
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