A wallet associated with the $40 million ZKasino scam has lost over $27 million in Ether due to the liquidation of a leveraged position, which many in the crypto community see as karmic justice. ZKasino, launched in April 2024, attracted investors by promising an airdrop of its native token for users who bridged their Ether to the platform. However, the funds were not returned and instead transferred to the staking protocol Lido Finance. Nearly a year later, the wallet was liquidated for $27.1 million after a sharp decline in ETH's price. Blockchain analytics platform Onchain Lens reported the liquidation, emphasizing that the scammer faced significant losses from a risky 20x leverage on the trading platform Hyperliquid. The liquidation occurred amid traditional market sell-offs that had adversely affected the crypto market, pushing ETH prices to a near two-year low. Despite an announcement from ZKasino regarding a process to return funds, affected users are yet to see any recovery of their investments, raising concerns over the integrity and future of the project.

Source 🔗