After the recent arrest of a suspected ZKasino founder, millions in staked Ether were returned to the team’s original multi-sig wallet. This move came after users noticed that withdrawals were disabled, leading to concerns in the cryptocurrency community.

On May 9, Etherscan data revealed that ZKasino’s team wallet held approximately 10,531 Lido staked Ether (stETH) valued at around $31.4 million. The funds had been transferred to private wallets controlled by at least one project founder before being returned to the original wallet.

Binance assisted law enforcement in tracking the funds, which ultimately led to the arrest of an unnamed suspect. Despite the arrest, ZKasino funds continued to move on-chain, sparking speculation of multiple individuals being involved in what many consider an exit scam, commonly known as a rug pull in the crypto space.

Following the return of funds to the multi-sig wallet, a developer associated with ZKasino, known as “Derivatives Monke,” refuted claims made by Binance and the wider crypto community. The developer assured users that they would continue working towards the project’s success.

The statement from Derivatives Monke received criticism from users and on-chain analytics providers, such as Nansen, who questioned the timing of the fund movements and their connection to recent events in the crypto space.

This development has raised concerns among investors and users of the platform, with many questioning the transparency and trustworthiness of ZKasino. Stay updated on the latest news and developments in the cryptocurrency space on Global Crypto News.

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