ZKasino, a crypto project valued at $350 million with backing from notable investors, faced controversy after launching its mainnet and token, ZKAS.
Originally promising ether redemption for participants, the project surprised investors by automatically converting funds to $ZKAS tokens instead. Prior to the launch, allegations of mismanagement and fund misappropriation had surfaced, leading to backlash from users.
The decision to convert funds and extend vesting periods sparked accusations of a rug pull, prompting anger and frustration among investors. Launchpads canceled ZKasino's offering, and the project faced delistings from exchanges. The $33 million in ETH was deposited into Lido without prior announcement.
