ZKasino begins partial ETH refunds after $33 million scam

ZKasino has refunded 35% of ETH deposits, marking the first refunds since the $33 million scandal.

Controversial crypto gambling platform ZKasino has started returning some of investors’ money after a $33 million scam that left thousands of users in the dark.

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

Founder of ZKasino breaks the silence

The project’s anonymous founder, Derivatives Monke, shared an update via a November 10 post on

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

A second wave of refunds is also expected next week, potentially bringing the total amount 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 that allowed customers to deposit Ethereum (ETH) in the month before launch, with more than 10,000 users sending 10,515 ETH, worth approximately $33 million at the time. The investors were reportedly promised that they could earn returns and withdraw their principal at any time.

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

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Subsequent investigations also found that it misrepresented its Series A funding, with claims of $350 million in backing from MEXC and Big Brain Holdings later. debunked. Additionally, on April 29, 2024, Dutch authorities arrested a 26-year-old in connection with the ZKasino incident, during which assets worth more than $12 million worth of cryptocurrency, real estate and luxury vehicles were seized.

Mixed reactions from the community

The crypto X community reacted quickly to the announcement, with reactions ranging from celebration to skepticism. Victims who lost small amounts of ETH confirmed they had gotten their money back, while larger depositors wondered when they would be refunded.

Others were pleasantly surprised by 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 evidence of remaining funds, clear timelines and independent oversight. Veteran crypto trader Eric Cryptoman questioned whether private sale investors would get their ETH back, noting that the project had retained $25 million. He added that he did not expect a refund as he had previously made similar investments, but that he found it remarkable that the team was still active and behaving as if nothing had happened.

In the meantime, the founder has done just that asked for patience from all affected customers, assuring them that they would receive their money in due course.