ZKasino presents DAO governance model following accusations of $32m rug pull

The developers of the ZKasino project presented a DAO management model for ZKAS token holders.

The project team shared an update to its governance system, in which the developers, who were previously accused of a $32 million rug pull, are preparing to launch a DAO governance model for the ZKasino network.

According to the project team, launching the DAO governance model is a significant step towards making ZKasino as decentralized as possible.

Some potential use cases for DAO have been proposed, including changing game contracts, introducing new games, community initiatives, and platform updates.

“In light of recent uncertainties, maintaining trust within our community remains our top priority at ZKasino.”

ZKasino team

Previously, ZKasino was suspected of engaging in fraudulent activities against users. The project team collected 10,515 ETH, then closed the Telegram channel and blocked the withdrawal of funds.

Etherscan data also confirmed that more than $32 million in user assets were transferred to another address and then sent to the Lido Finance liquid staking protocol.

In connection with the incident, the MEXC crypto exchange canceled the listing of the native token of the ZKAS project, and the Ape Terminal platform canceled the initial coin offering. VC firm Big Brain Holdings has also distanced itself from ZKasino and claims it had never invested directly in this crypto casino.