% 0.01
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Market Cap:
$2.34 T
% 0.00
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53 / 100
$ 64.247
BTC Dominance:
% 54.1
Market Cap:
$2.34 T

Hope for ZKasino Victims as Stolen Funds Return Amid Exit Scam Allegations


In the chaos of the supposed exit scam at ZKasino, affected users found a light at the end of the tunnel as more than $20 million worth of assets were somehow returned to the project’s wallet. The recent comeback of 6,021 wstETH, which represents two-thirds of the lost amount, has sparked a debate about the likelihood of refunds for the victims.

The Return: A Ray of Hope

On May 9 there was a substantial development, reported by an X feed, which mainly deals with recovery of funds in connection with the ZKasino scandal. There has been a total of nearly $21 million in assets returned to the Lido multisig wallet in wstETH, which is a wrapper for the Lido stakings ETH. This surprising twist of events caused some to speculate that investors may finally receive the restitution they were promised.

The $JAIL feed gives a prove of the transactions through Etherscan as one of the three scammers just returned the funds to the original multi-sig wallet address.

An Exit Scam Unfolds

The story started when ZKasino was launched on the 20th of April with a benefit of airdrop of its native token ZKAS for bridging their ETH to the platform. Nevertheless, the pledges to bring back the deposited ETH became a hell for the investors. Rather than fulfilling their promise, the project redirected about $33 million worth of users’ Ethereum to the staking protocol Lido Finance.

The community was hit with the accusations of an exit scam or rug pull as over 10,000 individuals got the sharp end of the stick in broken promises.

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The Pursuit of Justice

The officials acted fast and the Dutch law enforcement detained a 26 year old individual accused of scam. The arrest resulted in an approximate seizure of $12. Cryptocurrencies and properties, along with luxury vehicles by the suspect, were recovered.

The arrested person was rumored to be associated with the project’s founder, known as “Derivatives Monke,” who was allegedly identified as Elham Nourzai by blockchain detectives, but this was just a speculation within the crypto community.

A Collaborative Effort

The Binance on-chain investigations team showed an exemplary teamwork by leading law enforcement to the suspect. Moreover, Binance enabled the freezing of cryptocurrency assets that were stolen amounting to millions of dollars after they got a court order.

However, the on-chain laundering of funds suggests that there might exist other perpetrators still at large. However, the project’s multisig wallet has been refilled lately in what has given new life to the victims.

A Drop in Crypto Scams

Even though the ZKasino case created a ripple in the crypto sphere, April was more tolerable in terms of losses due to scams and hacks. As per CertiK, one of the premier on-chain intelligence companies, $25. Even though the ZKasino fiasco was not accounted for, $7 million of cryptocurrency disappeared. It is the lowest historical level since 2021 and might there be a sign of the decrease in the amount of fraud.

In the chaotic terrain of cryptocurrency scams and illicit practices, the refund of stolen funds to ZKasino restores hope for the victims of an exit scam.

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