A wallet linked to the controversial $40 million ZKasino crypto scam has suffered a staggering $27.1 million loss after its high-leverage Ethereum position was liquidated due to a sharp price drop. The liquidation, which occurred on April 7, 2025, is being hailed by the crypto community as a form of karmic retribution.

ZKasino launched in April 2024, promising users an airdrop of its native token in exchange for bridging their Ether (ETH) to the platform. However, the platform later diverted approximately $33 million in ETH to the staking protocol Lido Finance—triggering widespread accusations of an exit scam.

Blockchain analytics firm Onchain Lens revealed that the wallet tied to the scam had opened a risky 20x leveraged ETH position on the trading platform Hyperliquid. When ETH prices plummeted to $1,480—the lowest since May 2023—the position was wiped out, resulting in the massive $27 million loss.

Despite the liquidation, victims of the ZKasino scam are no closer to recovering their stolen funds. In May 2024, ZKasino claimed it was initiating a refund process where users could reclaim their ETH at a 1:1 ratio. However, users who opted in would forfeit their ZKAS token allocations and any future rewards.

Dutch authorities arrested a suspect connected to the rug pull in late April 2024, and some of the ETH was returned to ZKasino’s multisig wallet. Despite this, no ETH has been redistributed to victims, nearly a year after the scam unraveled.

Frustrated investors say they’ve heard nothing from ZKasino since returning their ZKAS tokens. The situation remains unresolved as crypto users continue to demand accountability.