TL;DR
- Vitalik Buterin criticizes ZKasino for misuse of zero knowledge tests.
- Alleged ZKasino scam with loss of $32 million in user funds.
- Cancellation of ZKasino listings by exchanges due to controversy.
Vitalik Buterin, co-founder of Ethereum, has raised his voice against ZKasino for what he sees as its misuse of zero-knowledge (ZK) proofs, a key technology in cryptocurrencies.
The criticism arises after an alleged scam case that would have cost users about $32 million in Ethereum (ETH).
Buterin points out that ZKasino, despite partnering with zksync, does not actually demonstrate an effective implementation of zero-knowledge proofs, but instead appears to exploit the term as a marketing strategy.
This reflects a broader concern in the cryptocurrency industry, where projects may focus on buzzwords without real technological backing.
The controversy intensified when ZigZag Exchange accused ZKasino developers of diverting development funds for personal gain.
These accusations, initially ignored, gained attention as the crypto community supported them.
ZigZag also questioned ZKasino‘s funding claims and its treatment of developers and contractors.
Given the pressure and mistrust generated, important exchanges such as MEXC canceled listings planned for ZKasino.
This action seeks to protect users from possible risks associated with suspected projects.
Similarly, Ape Terminal canceled its ZKasino -linked Initial DEX Offering (IDO), promising refunds to participants.
The financial and reputational impact on ZKasino is evident
Although repayment guarantees were initially offered that managed to raise a significant amount of funds, the lack of clarity and accusations of financial mismanagement have eroded confidence in the viability of the project.
Despite the team’s continued efforts to launch the network, an atmosphere of skepticism and disillusionment persists among the user and investor community.
This case strongly highlights the imperative need to carry out due diligence when making investments in the cryptographic field.
In this sense, the importance of having effective protection mechanisms for investors is highlighted, thus guaranteeing a safer and more transparent environment for all market participants.
The lesson here is clear: beyond the buzzwords, integrity and real support are essential in the world of cryptocurrencies.
