ZKasino’s bridge back: ETH reclaim process in the face of controversy

Lea Hogg May 30, 2024

SiGMA news

ZKasino’s bridge back: ETH reclaim process in the face of controversy

According to the instructions provided by ZKasino, a blockchain-based gambling project, it has initiated a“2-step bridge back process” to return funds to investors. This allows investors to participate in the 2-step bridge back process with a 1:1 ratio for bridging back their Ethereum (ETH). The ZKasino team has assured everyone that they are working hard to make the project successful.

The refund process requires “bridgers” to send back their complete ZKasino (ZKAS) token balance from the original address where they initially invested their Ether. After a data verification process, a claim portal will be opened to facilitate the refund. However, investors who choose to receive their ETH back will forfeit any allocated ZKAS tokens and the remaining 14 months of the ZKAS release.

However, it’s important to note that some investors have raised concerns about this process. The chosen 72-hour window for the bridge back process has been questioned, and there is skepticism regarding the sign-up page, with fears it may be a potential wallet drainer or scam.

Furthermore, the Medium post announcing the refund process was not shared by ZKasino’s official account but rather by the ZKasino builder known as “Derivatives Monke,” who has been at the centre of the controversy. This has added to the suspicions and concerns of some people. As always, it’s crucial for investors to do their own research and exercise caution when dealing with such situations.

ZKasino‘s window for this process is open until 31 May, after which the signup process will be closed, and deposits will be halted.

The announcement came in the wake of allegations that ZKasino had altered its token redemption policies. This alteration reportedly left users unable to reclaim their bridged Ethereum as initially promised, leading to accusations of a “rug pull”.

How to Bridge

Step	ZKasino’s process to bridge back
✅ First	To sign up, bridgers can deposit their first received batch of ZKAS bridge rewards. This action forfeits the remaining 14 months of ZKAS release. Bridgers have until 31 May 14:00 UTC to sign up.
✅ Second	Bridgers can access their respective ZKAS rewards on the ZKasino EVM Chain.
✅ Third	Bridgers will have to deposit their ZKAS rewards onto a smart contract controlled by ZKasino.
✅ Last	After three days, the signup process will be closed, and deposits will be halted.

Source: SiGMA

Arrest in the Netherlands

Earlier in the month, the ZKasino CEO was reportedly arrested by Dutch law enforcement on charges of fraud, embezzlement, and money laundering. During the operation, assets including cryptocurrencies valued at $12.2 million were seized.

Despite these challenges, ZKasino has initiated a process to reimburse users who choose not to participate in the ZKAS conversion. However, users who opt to bridge back are warned that doing so would result in forfeiting future ZKAS rewards.

To sign up, bridgers can deposit their first received batch of ZKAS bridge rewards. This action forfeits the remaining 14 months of ZKAS release.

This unfolding controversy highlights the risks inherent in the world of Web3 gaming. As the story continues to develop, users are urged to take the necessary steps to secure their assets with caution.