TechFlow reports that ZigZag, a DEX in the zkSync ecosystem, has posted a tweet stating that multiple individuals have recently accused the ZKasino team, a decentralized betting platform, of owing them money or defrauding them in some way. Several former employees and contractors have also stated they have unpaid invoices and have not received payment for their work.
One investor claimed that fundraising proceeds were fabricated, and it's possible both the fundraising amount and valuation were falsified.
ZigZag stated that while it raised $15 million, the funds were controlled by ZKasino’s founders. Initial capital for ZKasino was stolen from the ZigZag Treasury. The founder of ZKasino was one of the 3 out of 5 signers on ZigZag’s multi-sig wallet, enabling them to use these funds to finance their own activities.
ZigZag had requested approximately $1 million back from ZKasino but has not yet received any compensation. As such, $ZZ token holders should now attempt to seek redress independently.
Additionally, ZigZag pointed out that ZKasino’s announced $40 million ecosystem fund is not genuine and will likely never be paid out in real funds.
