On-chain monitoring has revealed that the decentralized gambling platform ZKasino, which previously siphoned off user funds, has returned all user funds by leveraging Ethereum... (Background: ZKasino, suspected of rug pulling, announced a 1:1 refund of ETH, but only within 72 hours and users must return $ZKAS...) (Additional context: Fraud at the crypto gambling platform ZKasino) A suspect was arrested in the Netherlands, with assets including cryptocurrencies seized totaling $12.2 million) The decentralized gambling platform ZKasino launched a bridging ETH reward event to earn its token $ZKAS in March this year, attracting over ten thousand participants and raising over 10,500 ETH (about $32 million), making it seem very successful. However, in late April, ZKasino was involved in a suspected 'rug pull' incident, causing panic and backlash within the community: On April 18, it was discovered that ZKasino had deleted the phrase 'Ethereum will be returned and can be bridged back' from its bridging website Bridge funds; On April 21, on-chain analyst Yu Jin reported that the project had transferred all ETH deposited by users into ZKasino to a multi-signature address, then stored it in Lido for staking; Similarly, on April 21, ZKasino seemed to have modified its official website statement, forcibly converting users' deposited ETH into the project’s platform token. ZKasino misappropriated user funds to leverage Ethereum. A month later, although ZKasino promised on May 28 to refund ETH to non-participating ZKAS converters at a 1:1 ratio, they still have not started repayments. According to on-chain data analyst Yu Jin's monitoring on November 23, ZKasino not only failed to fulfill its refund promise but also misappropriated user funds to start leveraging Ethereum on-chain: It seems that users have no hope of a refund after waiting for 7 months; ZKasino leveraged user ETH on-chain to trade Ethereum just 7 hours ago, can you believe it? They deposited 5,270 ETH into Aave as collateral to borrow 11.589 million DAI, then bought 3,500 ETH... It looks like @ZKasino_io users have no hope of a refund after waiting 7 months: they leveraged user ETH on-chain to trade Ethereum just 7 hours ago, can you believe it? They deposited 5,270 ETH into Aave as collateral to borrow 11.589 million DAI and then bought 3,500 ETH... What’s the plan, are you preparing to leverage trading to make money and then return ETH... pic.twitter.com/TyunyJ6EPe — Yu Jin (@EmberCN) November 23, 2024 ZKasino leveraged all user funds to trade Ethereum Not only that, according to Yu Jin's monitoring yesterday (26), ZKasino again misappropriated user funds to continue leveraging Ethereum on-chain: ZKasino is getting bolder and continues to leverage. In the past 15 minutes, they deposited another 5,265 ETH from another address into Aave as collateral to borrow 12.348 million DAI and bought 3,515 ETH. They have now deposited all of the users' 10,535 ETH into Aave as collateral to borrow 31.937 million DAI and purchased 9,316 ETH, with an average price of $3,428 for this leveraged purchase of ETH. ZKasino is getting bolder and continues to leverage. In the past 15 minutes, they also deposited 5,265 ETH from another address into Aave as collateral to borrow 12.348 million DAI and bought 3,515 ETH. They have now deposited all of the users' 10,535 ETH into Aave as collateral to borrow 31.937 million DAI and purchased 9,316 ETH. The average price for this leveraged purchase of ETH is $3,428... https://t.co/w1guNmcsyk pic.twitter.com/YXofe4leuV — Yu Jin (@EmberCN) November 25, 2024 Community blasts ZKasino When ZKasino first misappropriated user funds to leverage Ethereum, the community reacted with outrage, stating that ZKasino was truly shameless; however, some helpless users began to hope whether ZKasino would return user funds after making a profit this time? Regardless of whether Ethereum rises or falls afterwards, ZKasino's dictatorial and delayed repayment actions deserve condemnation, as losing only costs the users' money, and even if they profit, it is unclear when the user funds will be returned... Related Reports Bitcoin's market share drops to 58%, analysts: BTC's surge to 100,000 is blocked, market funds may flow to Ethereum and other altcoins Bitcoin's 'overnight plunge of $6,000' risks falling below 93,000, Ethereum quickly rebounds, funds flow into altcoins Quick overview jump.fun: Issuing tokens immediately grants 6 ETH liquidity, can it help Ethereum regain meme territory? "ZKasino misappropriated all user funds to leverage ETH, the community criticized: never seen such shamelessness..." This article was first published on BlockTempo (BlockTempo - the most influential blockchain news media).

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