ZKasino Scam-Related Wallet Lost $27 Million on ETH Long Trade Position
His loss amounted to $27.1 million, Onchain Lens pointed out.
”A scammer gets a portion of karma,” noted the authors of the analytical resource.
The project positioned itself as a gambling and blockchain casino platform, misleading investors with promises that they could get their funds back in 30 days, remembered Colin Wu.
”ZKasino developers bet everything on ETH and the market screwed them, looks like the casino doesn't always win,” commented one user.
Some traders successfully took advantage of the market volatility on April 7. Keith, who opened a long on ETH with $4.52 million and 20x leverage, closed the position three hours later for a profit of $1.87 million.
Bitcoin recovered to near $76,700 (CoinGecko) after collapsing below $75,000. A large trader contributed $5 million to USDC amid the rebound, opening a long position with 20x leverage and a price of $77,231.
According to Coinglass, liquidations in the options market reached $1.43 billion in the past 24 hours, of which longs totaled $1.22 billion. More than 461,600 traders were affected by the closures.
The largest single liquidation of $7.08 million was recorded on the OKX platform.
Market correction leads to $106 million Ethereum whale liquidation
A large Ethereum holder has been subjected to a forced closure of a 67,570 ETH ($106 million) position on DeFi platform Sky after the collateral ratio fell below the liquidation threshold.
The catalyst was the collapse of the price of the second largest cryptocurrency by 12.5% in the evening of April 6. The next day, the quotes had already lost 9%, failing the $1500 mark.
In the event of liquidation, Sky will confiscate the coins in collateral to be auctioned off to recover the borrowed DAI plus fees. Any remaining amount after liabilities are covered is returned to the platform user. The protocol further burns the received stablecoins, reducing the emission;
According to DeFi Llama, Sky has a user with a $79.4 million position that could be forcibly closed if oracles fix the price of Ethereum below $1495.
Blockchain casino ZKasino has been accused of stealing $33 million in user funds
ZKasino, a blockchain casino development company, sent 10,515 ETH, equivalent to $33.9 million, to the Lido steaking protocol instead of returning the funds to its users and investors.
At first glance, ZKasino looked like any other crypto project. The company announced a valuation of a $350 million Series A round backed by $26 million from investors including cryptocurrency exchange MEXC. Their smart contracts were verified by well-known security firm Certik (after initially verified by ChatGPT). The project's test networks worked correctly.
Early participants of the project made Ethereum deposits through the bridge to farm the native token ZKAS. Initially, the project team promised that participants would be able to get their assets back. However, in a message dated April 20, ZKasino announced the launch of the network and changes to the original plan.
The platform confirms that all ETH received has been converted to ZKAS at a reduced rate of $0.055 with a 15-month vesting.
Analysts at EmberCN have noticed a suspicious transfer of funds to the Lido steaking protocol by developers. This came after the developers changed the wording on their website, removing the statement about the possibility of ETH refunds.
ETH was contributed by ZKasino users for farming. As a result, the project team changed the official site description and forcibly exchanged ETH for their platform token.
A Web3 developer under the nickname cygaar reported that the launched ZKasino is actually an ”Arbitrum Nitro chain” that took only two minutes to deploy. In addition, he noted that the protocol does not use zero-disclosure proofs or EigenDA, despite claims made by the project team.
Hundreds of messages from ZKasino users who clearly invested in the project are now claiming that the project is a known type of exit scam*. Some users have even circulated the personal information and address of ZKasino's founder, known by the pseudonym ”Derivatives Monke”, using this information to call for legal action.
Venture capital company Big Brain said it has never invested in ZKasino and expressed that the project itself seems fraudulent.
”Big Brain Holdings invested in ZigZag Exchange in 2022, which subsequently turned into a financial loss. Some of the co-founders of this project are now part of the ZKasino team, which appears to be dirty hands,” noted the company”.
The alleged founder of ZKasino under the nickname Derivatives Monke responded in one of the this reply to another user's post about being ”sued for stealing $30 million”: ”You're a 60-year-old boomer hanging out with 20-year-old kids.
The ZKasino team has not made any other statements regarding the situation.
ZKasino Scam-Related Wallet Lost $27 Million on ETH Long Trade Position
His loss amounted to $27.1 million, Onchain Lens pointed out.
”A scammer gets a portion of karma,” noted the authors of the analytical resource.
The project positioned itself as a gambling and blockchain casino platform, misleading investors with promises that they could get their funds back in 30 days, remembered Colin Wu.
”ZKasino developers bet everything on ETH and the market screwed them, looks like the casino doesn't always win,” commented one user.
Some traders successfully took advantage of the market volatility on April 7. Keith, who opened a long on ETH with $4.52 million and 20x leverage, closed the position three hours later for a profit of $1.87 million.
Bitcoin recovered to near $76,700 (CoinGecko) after collapsing below $75,000. A large trader contributed $5 million to USDC amid the rebound, opening a long position with 20x leverage and a price of $77,231.
According to Coinglass, liquidations in the options market reached $1.43 billion in the past 24 hours, of which longs totaled $1.22 billion. More than 461,600 traders were affected by the closures.
The largest single liquidation of $7.08 million was recorded on the OKX platform.
Market correction leads to $106 million Ethereum whale liquidation
A large Ethereum holder has been subjected to a forced closure of a 67,570 ETH ($106 million) position on DeFi platform Sky after the collateral ratio fell below the liquidation threshold.
The catalyst was the collapse of the price of the second largest cryptocurrency by 12.5% in the evening of April 6. The next day, the quotes had already lost 9%, failing the $1500 mark.
In the event of liquidation, Sky will confiscate the coins in collateral to be auctioned off to recover the borrowed DAI plus fees. Any remaining amount after liabilities are covered is returned to the platform user. The protocol further burns the received stablecoins, reducing the emission;
According to DeFi Llama, Sky has a user with a $79.4 million position that could be forcibly closed if oracles fix the price of Ethereum below $1495.
Blockchain casino ZKasino has been accused of stealing $33 million in user funds
ZKasino, a blockchain casino development company, sent 10,515 ETH, equivalent to $33.9 million, to the Lido steaking protocol instead of returning the funds to its users and investors.
At first glance, ZKasino looked like any other crypto project. The company announced a valuation of a $350 million Series A round backed by $26 million from investors including cryptocurrency exchange MEXC. Their smart contracts were verified by well-known security firm Certik (after initially verified by ChatGPT). The project's test networks worked correctly.
Early participants of the project made Ethereum deposits through the bridge to farm the native token ZKAS. Initially, the project team promised that participants would be able to get their assets back. However, in a message dated April 20, ZKasino announced the launch of the network and changes to the original plan.
The platform confirms that all ETH received has been converted to ZKAS at a reduced rate of $0.055 with a 15-month vesting.
Analysts at EmberCN have noticed a suspicious transfer of funds to the Lido steaking protocol by developers. This came after the developers changed the wording on their website, removing the statement about the possibility of ETH refunds.
ETH was contributed by ZKasino users for farming. As a result, the project team changed the official site description and forcibly exchanged ETH for their platform token.
A Web3 developer under the nickname cygaar reported that the launched ZKasino is actually an ”Arbitrum Nitro chain” that took only two minutes to deploy. In addition, he noted that the protocol does not use zero-disclosure proofs or EigenDA, despite claims made by the project team.
Hundreds of messages from ZKasino users who clearly invested in the project are now claiming that the project is a known type of exit scam*. Some users have even circulated the personal information and address of ZKasino's founder, known by the pseudonym ”Derivatives Monke”, using this information to call for legal action.
Venture capital company Big Brain said it has never invested in ZKasino and expressed that the project itself seems fraudulent.
”Big Brain Holdings invested in ZigZag Exchange in 2022, which subsequently turned into a financial loss. Some of the co-founders of this project are now part of the ZKasino team, which appears to be dirty hands,” noted the company”.
The alleged founder of ZKasino under the nickname Derivatives Monke responded in one of the this reply to another user's post about being ”sued for stealing $30 million”: ”You're a 60-year-old boomer hanging out with 20-year-old kids.
The ZKasino team has not made any other statements regarding the situation.