A DeFi platform embroiled in controversy recently announced that it will be returning stolen funds to its investors at a 1:1 ratio. The platform, which was charged by Dutch authorities for stealing $30 million in user deposits, revealed in a blog post on May 28 that investors can reclaim their Ethereum (ETH) through a newly introduced “2-step backbridge process.”
This announcement comes on the heels of the arrest of a 26-year-old Dutch man connected to the platform earlier in May. The man faces charges including fraud, embezzlement, and money laundering, and is said to be the mastermind behind the pseudonymous ZKasino developer account known as “Derivatives Monke.” Authorities in the Netherlands have seized assets totaling €11.4 million, which include real estate, a luxury car, and various cryptocurrencies.
Despite ZKasino’s efforts to refund investors, skepticism remains high within the community. The lack of direct communication with Dutch authorities and the short 72-hour window given to investors to sign up for the refund process has raised doubts about the platform’s intentions. Some critics fear that the brief deadline may prevent many from recovering their deposits and suspect it could be another scam to drain people’s wallets.
Additionally, concerns have been raised about the staking rewards earned from user deposits, with questions regarding why the platform is asking investors to go through another process instead of simply returning the Ethereum. Furthermore, doubts have been raised about the legitimacy of the blog and its associated social media posts, particularly questioning how the incarcerated Derivatives Monke could be tweeting about the refund.
The issues with ZKasino began in March with the launch of the “Bridge-to-Earn” program, which promised rewards for locking up ETH temporarily. However, when the redemption period came in April, ZKasino held around $30 million in deposits, leading to allegations of fraudulent activities from investors and authorities alike. Despite ZKasino’s claims of legitimacy, the combination of legal troubles, investor distrust, and the recent refund announcement has left many questions unanswered.
As the deadline for the 72-hour refund window approaches, the cryptocurrency community is watching closely to see if ZKasino will follow through on its promises or if further complications will arise.
