The zkSync decentralized exchange project, ZigZag, has accused the decentralized gambling platform ZKasino of fraud, claiming that the money used to build ZKasino was stolen from the ZigZag Treasury.

ZigZag founder Kedar Iyer called out ZKasino founders on social media, stating that they misused funds intended for ZigZag to build out ZKasino. He further alleged that ZKasino founders were responsible for ZigZag’s fundraising, where $15 million was raised and went into addresses controlled by ZKasino.

Iyer mentioned that he demanded recompensation for funds diverted to ZKasino but received no response, prompting ZigZag token holders to seek restitution independently. Multiple former ZKasino employees and contractors have also come forward with claims of unpaid wages.

Iyer attributed ZigZag’s failure to Derivatives Monke’s actions, accusing them of mishandling funds through market making and leverage trading. However, a ZigZag employee defended Derivatives Monke, suggesting Iyer’s own shortcomings contributed to ZigZag’s downfall.

Derivatives Monke responded, stating that Iyer was envious of their success with ZKasino and Syncus. The exchange of accusations between the parties highlights the contentious nature of the situation.

In conclusion, the dispute between ZigZag and ZKasino underscores the challenges faced in the cryptocurrency space, emphasizing the importance of transparency and accountability in project management. It serves as a cautionary tale for investors and developers alike to conduct due diligence before engaging in financial partnerships.

Post Views: 8