ZKasino is under scrutiny after users face withdrawal issues

Cryptocurrency betting platform ZKasino is reportedly facing criticism from users who doubt the platform’s reliability.

Adding to the uncertainty, ZKasino’s official Telegram channel was rumored to have been banned, but crypto.news confirmed that the account is still active.

ZKasino hasn’t responded to requests for comment.

A significant concern also arose from the revelation that ZKasino’s deposit wallet holds a substantial amount of 10,500 Ether (ETH), valued at around $32 million. It has led to questions about the platform’s financial activities and management practices.

The issue has become especially pertinent given previous accusations of fraud against the ZKasino team. These allegations — highlighted in an X post by ZigZag founder Kedar Iyer — have contributed to a growing sense of distrust around ZKasino.

According to Iyer, members of the ZKasino team defrauded several former contractors and employees by absconding with their pay for work done building the platform.

In the social media post, Iyer openly criticized ZKasino founders, stating, “They would claim they were withdrawing funds to pay ZigZag frontend developers but diverted some for ZKasino development.” 

Iyer also claimed that ZKasino founders, particularly Derivatives Monke, had been managing ZigZag fundraising activities and managed to raise $15 million, which was redirected to ZKasino-controlled addresses.

Additionally, crypto journalist Colin Wu highlighted a change to ZKasino’s bridge interface and exposed a concerning element: the removal of a crucial sentence about the return and bridging of Ethereum funds. 

This alteration, documented by the Wayback Machine, alarmed users about the platform’s transparency, motives, policies and procedures.

To compound the situation, cryptocurrency exchange MEXC has announced that it will postpone the listing and withdrawal of ZKasino’s native token, ZKAS. The move means that deposits in ZKAS will also be affected. 

MEXC also stated that it would announce the resumption of ZKAS’s listing and withdrawals at an unspecified date. Although it did not explicitly state the reason behind its suspension of ZKAS’s listing, MEXC’s move has left users unable to access their funds or use the betting platform as intended.