According to PANews, zkSync ecosystem DEX ZigZag recently reported that several people have accused decentralized betting platform ZKasino of owing money or committing fraud in some way. Additionally, multiple former employees and contractors claimed they have not received payment for their work. ZigZag founder Kedar contacted one of ZKasino's investors, informing them of the project's fake revenue. The investor responded that they had not actually participated in the financing, suggesting that ZKasino's funding and valuation could also be false.
Previously, ZigZag raised $15 million, which went to an address controlled by ZKasino's founder. Kedar stated that he never had control over the funds, implying that more money than he knew of could have been stolen or funneled into ZKasino. Kedar also mentioned that he had previously requested ZKasino to return a $1 million investment but received no compensation. Therefore, ZZ token holders should now try to obtain compensation themselves. Furthermore, the announced $40 million ecosystem fund is not real and may never be paid out in any actual currency.