ZKasino exit scam
ZKasino ran a 'bridge-to-earn' campaign that, per reporting, collected about 10,515 ETH (~$33M). At launch the project converted deposits into its native ZKAS token instead of returning ETH and moved funds to a team multisig and into Lido. The event was widely reported as a rug pull.
Also known as: ZKasino, Derivatives_Ape, Elham Nourzai, Ildar Ilham
Summary
ZKasino, a crypto gambling project, ran a "bridge-to-earn" campaign in which users deposited ETH. Reporting indicates more than 10,000 users deposited about 10,515 ETH (around $33 million). [2][3] At its launch on April 20, 2024, the project converted those deposits into its native ZKAS token rather than returning ETH, and moved the funds to a team-controlled multisig and into Lido staking. [2][3]
Stated terms
CoinDesk reported that the project's website originally said bridged ether would be "returned" after the bridging period and that this wording was later removed. [2] In an April 20 post, the project said deposits had been converted to ZKAS "as a favour to our users who have bridged to participate in the ecosystem". [2][3]
Prior warnings
ZachXBT had described the founders as "proven bad actors" in December 2023 and listed unpaid debts attributed to team members. [1][2]
Outcome
Reporting indicates Dutch police arrested a co-founder and seized assets valued at over €11 million; ZachXBT later reported a second co-founder was arrested in the UAE. [1][3] Investors and outlets characterized the event as a rug pull. [2][3]
Bracketed numbers refer to the numbered sources listed below.
Linked scams & cases
- MoonHarvest FinanceRelatedProjectsA DeFi yield farm that drained its liquidity pool 11 days after launch, taking an estimated $4.2M from depositors.
- Serial DeFi rug operator (Sorta / Magnate / Kokomo / Solfire)RelatedProjectsZachXBT publicly warned that Sorta Finance (Arbitrum) was likely to be an exit scam and linked it to a series of earlier lending-protocol rug pulls attributed to the same actor, with reported cumulative losses above $25M.
Sources (3)
See also
- Profit ConnectProjectsA Las Vegas company that the SEC said was a $12M+ Ponzi scheme: it told 277+ investors their money would be invested in securities and crypto via an 'artificial intelligence supercomputer' guaranteeing 20–30% annual returns. The SEC halted it in 2021; over 90% of funds came from investors.
- CoinseedProjectsA mobile crypto-investing app that the SEC and New York AG said was fraudulent: it sold unregistered 'CSD' tokens, misrepresented its management, charged hidden fees, and traded in customers' accounts without permission. A NY court shut it down in 2021 with a $3M judgment against CEO Delgerdalai Davaasambuu.
- ShopinProjects
This page was last updated on Jun 8, 2026. View revision history.