ZKasino Begins Partial ETH Refunds After $33M Scam

Embattled crypto gambling platform ZKasino has started returning a portion of investor funds following a $33 million scam that left thousands of users in limbo.

The refunds come nearly six months after Dutch authorities arrested a suspect linked to the platform’s alleged rug pull, marking a tentative step toward restitution for affected users.

ZKasino Founder Breaks Silence

The project’s anonymous founder, Derivatives Monke, shared an update via a November 10 post on X, stating that approximately 35% of withdrawal requests have already been processed, covering roughly 2,500 of the 8,000 affected addresses.

They noted that refunds are complex due to the multiple parties involved and added that the amounts returned are not necessarily final, with possible interest adjustments still pending.

A second wave of repayments is also expected next week, potentially bringing the total refunded to 75% of affected users. The founder added that while the project aims to make the process simple for most users, KYC and other procedures will apply to larger withdrawals for legal reasons.

In early 2024, in a campaign known as “bridge-to-earn,” ZKasino enabled a token bridge for customers to deposit Ethereum (ETH) in the month before its launch, with more than 10,000 users sending 10,515 ETH, worth around $33 million at the time. The investors were reportedly promised they could earn a yield and withdraw their principal at any time.

However, on-chain data shows that the platform instead converted deposits into vested ZKAS tokens and staked the ETH on Lido, effectively locking customer funds without their consent. The team then fell silent for more than a year, leading to accusations of a rug pull.

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Subsequent investigations also revealed that it misrepresented its Series A funding, with claims of $350 million in backing from MEXC and Big Brain Holdings later debunked. Furthermore, on April 29, 2024, Dutch authorities arrested a 26-year-old connected to the ZKasino incident, seizing assets worth over $12 million in cryptocurrency, real estate, and luxury vehicles.

Mixed Community Reactions

The crypto X community was quick to respond to the announcement, with reactions ranging from celebrations to skepticism. Victims who had lost small amounts of ETH confirmed that they had received their funds back, while larger depositors questioned when they would be reimbursed.

Others were pleasantly surprised at the development given the team’s silence over the past year. “Zkasino refunding me was not on my 2025 bingo card,” wrote X user alvarzz.

Some members continued to call for full transparency, demanding audited proof of remaining funds, clear timelines, and independent oversight. Veteran crypto trader Eric Cryptoman questioned whether private sale investors would recover their ETH, pointing out that the project had retained $25 million. He added that he did not expect a refund, having made similar investments before, but found it noteworthy that the team was still active and behaving as if nothing had happened.

Meanwhile, the founder has asked for patience from all affected customers, assuring them that they would receive their funds in due time.