ZKasino Converts Bridged ETH Deposits
- DeFi
- Security
- ZachXBT
On April 20, 2024, ZKasino announced that bridged ETH deposits would be converted into its native token ZKAS, reversing many users' expectations of redeeming ETH directly. Derivatives Monke is the pseudonymous founder (real name reportedly Elham Nourzai), who faced widespread accusations of executing a rug pull by converting user deposits into vested ZKAS tokens and staking the ETH on Lido instead of allowing refunds as initially promised. The controversy led to Dutch police arrests, refund attempts under pressure, and significant backlash, with the project ultimately collapsing amid scam allegations and liquidations of related positions.
Incident Details
- Type
- RUG PULL
- Funds Lost
- $33M
- Status
- Partial recovery
The incident prompted ongoing refund demands, public scrutiny of the team, and reporting tying the project to the pseudonymous founder Derivatives Monke, alongside law-enforcement attention in the Netherlands.