ZKasino Returns 35% ETH, Seeks 75% Redemption After $33M Rug
ZKasino, a DeFi casino platform, has initiated ETH refunds to compensate users after its $33M rug pull. So far, 2,500 of the 8,000 affected addresses (35%) have received partial payouts. A second refund batch is set for next week, potentially covering up to 75% of investors. Larger withdrawals will require KYC checks and may incur interest adjustments under legal obligations.
The ETH refunds process follows the collapse of ZKasino’s “bridge-to-earn” campaign, where over 10,000 wallets bridged 10,515 ETH. Deposits were converted into vested ZKAS tokens and staked on Lido without consent. In April 2024, Dutch authorities arrested a suspect, seizing about $12M in crypto, real estate and vehicles. Ongoing liquidity and legal actions will determine the final recovery. Traders should monitor refund schedules, transparency measures and on-chain asset movements for potential market impact.
Neutral
While ZKasino’s ETH refunds offer relief and reduce immediate sell pressure, the event stems from a project-specific rug pull and therefore has limited influence on Ether’s broader market. In the short term, partial payouts may calm panicked investors, mitigating sharp price dips. Over the long term, the resolution underscores risks in DeFi yield schemes rather than signalling a fundamental change in ETH’s value. Consequently, the net effect on ETH price is expected to be neutral.