Key Takeaways:
- Over $20 million in Ethereum was returned to ZKasino, sparking hopes of refunds after accusations of an exit scam.
- A 26-year-old suspect, potentially the project founder “Derivatives Monke” (Elham Nourzai), was arrested, with significant assets seized.
- Binance aided in freezing stolen cryptocurrency and supported law enforcement, suggesting ongoing investigations and potential for more culprits at large.
In a surprising turn of events, over $20 million worth of bridged Ethereum has been returned to the blockchain-based gambling platform, ZKasino, nearly three weeks after it was embroiled in accusations of an exit scam by its users.
The significant movement of funds occurred on May 9, with the ZKasino fund recovery initiative reporting that approximately $21 million in wrapped Lido staked Ethereum (wstETH) was deposited back into the project’s multisignature wallet.
UPDATE! 2/3 of the Zkasino $ZKAS bridged eth are now back on the multi-sig wallet!https://t.co/rIYEHOL7my
— $JAIL (@jail_monke) May 9, 2024
Could they be preparing to refund the victims ?? pic.twitter.com/oNT39faXvT
This development has fueled optimism among investors that refunds might be on the horizon.
The returned 6,021 wstETH represents about two-thirds of the total Ethereum reportedly missing from the heist, leading to speculation that the individuals behind the scam may be gearing up to reimburse the affected parties.
ZKasino, which launched on April 20, initially enticed users with airdrops of its native token, ZKAS, in exchange for bridging Ethereum to the platform.
Contrary to promises of returning these funds, the project redirected approximately $33 million worth of users’ Ethereum to the staking protocol Lido Finance, triggering allegations of an exit scam as over 10,000 participants were impacted.
These events led to the arrest of a 26-year-old suspect on April 29 by Dutch authorities, who was purportedly involved in the ZKasino scheme.
During the arrest, assets including cryptocurrencies, real estate, and luxury vehicles valued at roughly $12.2 million were seized.
OVER $20M IN BRIDGED $ETH RETURNED TO ZKASINO WALLET AMID EXIT SCAM ALLEGATIONS
— BSCN (@BSCNews) May 9, 2024
– More than $20 million in bridged Ether or 6,021 wstETH, was unexpectedly returned to ZKasino's multisignature wallet on May 9.
– This occurred nearly three weeks after the blockchain-based… https://t.co/R78xm3hENE pic.twitter.com/akpGz0uw0r
Further investigations have implicated the suspect as possibly being the project founder, known under the pseudonym “Derivatives Monke,” who was later identified as Elham Nourzai by blockchain detectives.
On May 8, the Binance on-chain investigations team was instrumental in assisting law enforcement with the suspect’s apprehension.
Binance also played a critical role by freezing several million dollars worth of stolen cryptocurrency following a seizure warrant from authorities targeting the attacker’s accounts.
While a suspect has been apprehended, the movement of illicit funds on the blockchain suggests that other culprits may still be at large.
However, the recent reclamation of funds to ZKasino’s multisig wallet offers a renewed sense of hope to the victims.
About The Author
Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.
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