ZKasino Users Plead for Refunds as $33M of Bridged Ether Sent to Lido

Depositors were originally told that bridged ether would be returned once the bridging phase was over.

AccessTimeIconApr 22, 2024 at 1:46 p.m. UTC
Updated Apr 22, 2024 at 2:29 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now
  • More than 10,000 users deposited $33 million worth of ether to earn ZKAS, ZKasino’s native token.
  • Despite initially saying that the bridged ether would be returned, ZKasino said it had converted the ether for ZKAS.
  • Blockchain data shows that the ether has been deposited to Lido.
  • Bitcoin ETFs Are Still 'Wildly Successful': Kraken Head of Strategy
    Bitcoin ETFs Are Still 'Wildly Successful': Kraken Head of Strategy
  • Wormhole’s W Token Has a 999% Weekly Return; Why VanEck Is Bullish on Ethereum Layer 2s
    Wormhole’s W Token Has a 999% Weekly Return; Why VanEck Is Bullish on Ethereum Layer 2s
  • NEAR Launches Multichain Access
    NEAR Launches Multichain Access
  • How NEAR Enables Multichain Access From One Account
    How NEAR Enables Multichain Access From One Account
  • Cryptocurrency casino ZKasino went live over the weekend, but the launch was met with dismay from investors, who are calling foul on the company for sending $33 million worth of user deposits to staking platform Lido.

    ZKasino is an on-chain gambling platform that uses zkSync and EigenDA as well as Chainlink and Randomizer’s Verifiable Random Functions to ensure fairness. In March, it raised $26.2 million at a $350 million valuation.

    In the lead-up to going live, ZKasino opened up a token bridge that allowed investors to deposit ether (ETH) to earn ZKAS, the platform’s native token. Originally, the website said that bridged ether would be “returned” once the bridging period was over, that wording has since been removed.

    In a blog post on April 20, ZKasino wrote that “all bridged ethereum has been converted to our native gas token, ZKAS, at a discounted rate of $0.055.”

    “This conversion was done as a favor to our users who have bridged to participate in the ecosystem,” it added.

    The $33 million worth of ether that was deposited by more than 10,000 users was subsequently sent by ZKasino to staking platform Lido, blockchain data shows.

    ZKasino is yet to respond to a wave of criticism from depositors, who are vocally requesting a refund on social media platform X.

    ZKasino did not immediately respond to CoinDesk’s request for comment.

    Edited by Parikshit Mishra.


    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Oliver Knight

    Oliver Knight is a CoinDesk reporter based between London and Lisbon. He does not own any crypto.

    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.