Users Report ZKasino Has Yet To Return $12M in ETH Months After Exit Scam Claims

Controversy continues to surround the crypto gambling platform ZKasino as users report they still have not received the promised refunds for Ether (ETH) deposited into the service.

The project claimed in May it would allow users 72 hours to sign up to get their ETH back after Dutch authorities seized $12 million in assets and arrested a founder for suspected fraud and embezzlement. However, two months later, affected users said the funds had remained frozen.

“Unfortunately, everyone who sent the ZKAS back has not heard anything from them yet,” one anonymous user told Cointelegraph. He deposited the equivalent of a year’s salary into ZKasino based on assurances that ETH would be returned.

On July 29th, it appears the ZKasino team took possession of over 26 million ZKAS tokens deposited into a “BridgeBackReceiver” contract that was supposedly for ETH refunds. No ETH has been sent back to users so far.

The controversial “bridge to earn” program launched in March promised users a share of ZKAS tokens for bridging ETH to ZKasino. In April, the team announced ETH would be converted to ZKAS instead of returned, prompting backlash.

Exit scams and rug pulls are an ongoing issue in crypto, with projects like ETHTrustFund DAO and Gemholic recently absconding with millions in investor funds. The lack of progress on returning funds two months after ZKasino’s legal troubles began suggests users are unlikely ever to get their ETH back.