- ZKasino has given users a 72-hour window to bridge back their ETH deposits after a month-long wait
- Users choosing not to convert their ETH to ZKAS have been allowed to bridge back at a 1:1 ratio, forfeiting bridge rewards
- Over 10,000 users have deposited $33 million worth of ETH to ZKasino
Cryptocurrency gambling platform ZKasino has given users a 72-hour window to bridge back their ETH deposits after a month-long wait following criticism over the controversial handling of user funds. In a recent blog post, ZKasino explained that users who choose not to convert their ether to the platform’s native token, ZKAS, can bridge back their ether at a 1:1 ratio but as a result, they will forfeit their bridge reward allocation. The update comes after more than 10,000 users deposited $33 million worth of ETH to the platform, hoping to earn ZKAS coins.
“A Favor”
The ZKasino controversy began when it was revealed that all deposited ETH would be converted to ZKAS, with on-chain data showing that ZKasino had sent the $33 million worth of deposits to staking platform Lido, sparking further speculation and frustration among users.
ZKasino attempted to justify this conversion in an April 20 blog post, stating that the ETH had been converted to ZKAS at a discounted rate of $0.055 per token, claiming that the conversion was “done as a favor to our users who have bridged to participate in the ecosystem.” This, however, went down very badly with the fledgling community:
You will go to jail
— mufettis.eth 🐋 (@nftmufettisi) April 21, 2024
The initial promise to return bridged ETH was quietly removed from the website, leading to further accusations of misleading investors.
Fears Over an Exit Scam
Zkasino launched in April but there are fears about the dedication of the team behind it, with the controversy of the handling of the ETH compounded by the fact that the team hasn’t published a single X post since its over a month ago. On April 30, auditing firm Certik marked Zkasino as a possible scam.
The update from Zkasino laid out the terms of the bridge back. Bridgers can sign up by depositing their first received batch of ZKAS bridge rewards, which will forfeit the remaining 14 months of ZKAS release.
Bridgers have until May 31 at 14:00 UTC to sign up for the bridge back.
