Decentralized gambling network ZKasino has faced notable hurdles due to concerns within the cryptocurrency community about a potential rug-pull scenario.
Over the past day, a number of popular posts on X (formerly Twitter) have highlighted a variety of issues plaguing the network.
ZKasino Accused of $32 Million Ethereum Rug Pull
Problems with the platform began last month after decentralized peer-to-peer order book exchange ZigZag Exchange made various accusations against ZKasino. This includes network developers diverting project development funds for personal use.
According to ZigZag, ZKasino lied about its funding and failed to pay numerous developers and contractors working on the platform.
“The initial funds to build ZKasino were stolen from the ZigZag Treasury. The ZKasino founders are 3/5 signers of the ZigZag multisig, so they could use the funds to fund their activities… The $40 million ecosystem fund they announced is not real and will never be paid out in real currency. ” ZigZag confirmed.
While most of these claims have gone unnoticed, several members of the crypto community have expressed their displeasure with the platform’s claims. eliminate Prior commitment to return bridged Ethereum.
Read more: Identifying and Navigating Risks in DeFi Lending Protocols
Initial pledges led to significant fundraising success, as evidenced by on-chain data, with over 10,500 ETH accumulated in the deposit address used in the campaign, totaling approximately $32 million. However, ZKasino described these intense concerns as fear, uncertainty and doubt (FUD).
“The ZKasino network will continue to be active. “There is a delay due to listing on the exchange.” Team added.
Meanwhile, the drama surrounding the project has already led the MEXC exchange to delist the token, a decision it said was in an effort to “protect the rights and interests” of its users. Similarly Ape terminal said We were monitoring the situation. However, it was made clear that if the situation worsens, token sales related to the project will be canceled.
disclaimer
In compliance with Trust Project guidelines, BeInCrypto is committed to unbiased and transparent reporting. These news articles aim to provide accurate and timely information. However, before making any decisions based on this content, readers are encouraged to check the facts and consult with experts. Our Terms of Use, Privacy Policy and Disclaimer have been updated.