ZK Casino has started issuing slow, partial repayments in what has become one of the crypto industry’s longest-running rug pull cases, according to an update shared by the project’s anonymous founder, Derivatives Monke, on X on Nov. 10.
The founder said that about 35% of addresses that had bridged Ethereum to the platform have now received refunds on either zkSync Lite or zkSync Era, with additional batches expected next week. Payout amounts are still being adjusted, and some users may receive added interest depending on final balance calculations.
For larger withdrawals, users will be required to complete identity verification, which the founder said is necessary to comply with legal obligations.
The scam that unfolded
ZK Casino launched in April 2024, promoting itself as a platform where users could bridge ETH to its layer-2 chain, earn yield, and withdraw their funds at any time. However, instead of honoring withdrawals, the project converted user deposits into vested ZKAS tokens and staked the ETH on Lido, effectively locking up users’ assets.
The scheme affected over 10,000 users, resulting in estimated losses of around $33 million. The project faced widespread backlash across the crypto community — including from Ethereum co-founder Vitalik Buterin, who questioned its claims of using genuine zero-knowledge technology.
Subsequent on-chain investigations linked the ZK Casino team to previous scam projects, and Dutch authorities made several arrests during the early fallout. However, only a small portion of the stolen funds was recovered at the time.
The refund process now
The recent repayment progress brings partial relief but stops short of a full resolution. So far, only about one-third of affected users have received refunds, with the founder stating that the team is collaborating with several partners to complete the remaining payouts.
According to the update, another 40% of refunds could be distributed next week, which would cover roughly 75% of all impacted wallets.
Even so, the timeline remains uncertain, and final recoveries may hinge on available liquidity, legal developments, and management of remaining on-chain assets. Many affected users remain skeptical, citing persistent delays and the absence of independent oversight throughout the process.
