The Web3 gambling platform ZKasino, which previously promised refunds, misappropriated user funds by depositing all 10,535 ETH that should have belonged to users into Aave as collateral, and borrowed a total of 53.91 million DAI, while buying 15,645 ETH to leverage long on ETH.
According to data monitored by the on-chain analyst Ember, the ZKasino project closed its position this morning for a total profit of 651.5 ETH ($2.37 million). Subsequently, the project transferred a total of 11,186.5 ETH (approximately $40.75 million) belonging to users and the earnings to 9 addresses, indicating they still seem unwilling to repay.
The ZKasino project has ended its leveraged long position on ETH, making a profit of 651.5 ETH ($2.37M). 1⃣ The ZKasino project previously misappropriated 10,535 ETH belonging to users, borrowing 53.91 million DAI on-chain to purchase 15,645 ETH to leverage long on ETH; 2⃣ Six hours ago, they chose to end this leveraged long position. They sold 15,005 ETH bought through leverage and repaid, earning a profit of 651.5 ETH;… https://t.co/EZWGrUxaNd pic.twitter.com/hf69CIkjXV
— Ember (@EmberCN) December 3, 2024
According to previous reports from Zombit, the Web3 gambling platform ZKasino launched a staking rewards program, promising to earn ZKAS token rewards for all users staking Ethereum across chains, attracting participation of 10,515 ETH (approximately $35.17 million). However, after the program ended, ZKasino forced a rule change, converting all user-staked assets at a discount to ZKAS tokens, with a lock-up period lasting over 15 months, directly turning users who only participated in "staking for airdrops" into "IDO subscriptions."
Despite the backlash from the community afterwards, ZKasino officials promised a 1:1 refund of Ethereum, but several months have passed since the incident, and the officials have shown no intention of fulfilling their promise.
Source
