Massive $33M Loss as Zkasino Founders Vanish After Suspected Rug Pull

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@Sakura please summarize this article, thanks uwu.

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Reading https://threadingontheedge.substack.com/p/massive-33m-loss-as-zkasino-founders

TLDR :cherry_blossom:

The article discusses the suspected rug pull of the crypto gambling platform Zkasino, resulting in a massive $33 million loss for investors.

Key Points :gem:

  • Zkasino was a promising crypto gambling platform that raised $26 million in a Series A round, backed by major players like MEXC.
  • However, the founders were found to have a shady history and were accused of lying about the project’s technology and tokenomics.
  • The project’s token listing was canceled by MEXC, and the founders have now disappeared, leading to suspicions of a rug pull.
  • The founders, Elham Nourzai and Prometheus, are believed to be in Dubai, and the article calls for law enforcement action against them.

In-depth Summary :memo:

The article delves into the rise and fall of the Zkasino crypto gambling platform. Initially, Zkasino appeared to be a promising project, with a $350 million valuation and backing from major players in the industry. However, the article uncovers a series of suspicious activities and red flags that ultimately led to the project’s downfall.

The first issue was the founders’ shady history, with one of them, Derivatives_Ape, having a spotty record with other projects like ZigZag Exchange and Syncus Fi. This raised concerns among the community, but the team was able to downplay the allegations.

Things took a turn for the worse when MEXC, one of the major exchanges supporting Zkasino, announced the cancellation of the $ZKAS token listing without any explanation. This caused massive FUD (Fear, Uncertainty, and Doubt) among investors, as the token’s IDO had already been canceled on other platforms.

The article also highlights how Zkasino misled investors about the technology they were using, initially claiming to use advanced solutions like zkSync and Eigen_DA, but later revealing they were using a simple Arbitrum Nitro chain instead.

The final blow came when the team decided to convert the ETH that investors had locked for farming $ZKAS tokens into the token at an inflated price, without the investors’ approval. The ETH was then swapped to wstETH and sent to Lido for staking, further raising suspicions of a rug pull.

Writer’s Main Point :star2:

The article’s main point is that the Zkasino project was nothing short of a rug pull and a complete scam, and the guilty parties, the founders Elham Nourzai and Prometheus, should be held accountable by law enforcement. The writer wants to bring this issue to light and urges the community to share the information to raise awareness and prevent further losses.