ZK Casino has resurfaced with an unexpected update after months of silence surrounding its collapsed project.
The project's anonymous founder, known as Derivatives Monke, shared an update on X on Nov. 10, stating that ZK Casino is moving forward with slow, partial repayments in one of crypto’s most drawn-out collapse disputes.
The founder reported that approximately 35% of addresses that bridged Ethereum (ETH) to the platform have now received refunds on either zkSync Lite or zkSync Era. Additional batches are anticipated next week. The refund amounts are still undergoing adjustments, and some users may receive additional interest depending on the final balance calculations.
Larger withdrawals will necessitate identity checks, which the founder cited as a requirement due to legal obligations.
The Scam That Unfolded
ZK Casino launched in April 2024, promising users they could bridge ETH into its layer-2 chain, earn yield, and withdraw their original ETH at any time. However, instead of processing refunds, the project converted these deposits into vested ZKAS tokens and staked the ETH on Lido.
Over 10,000 users were impacted, with estimated losses around $33 million. The project faced significant criticism from the crypto community, including from Ethereum's Vitalik Buterin, who questioned its claims of using zero-knowledge technology.
On-chain researchers later established connections between the team and previous scams. Dutch authorities conducted multiple arrests during the initial fallout, though only a small portion of the funds was recovered at that time.
The Refund Process Now
The current progress on refunds offers some relief, but it does not represent a full resolution. Only about one-third of users have received their funds thus far, and the founder indicated that the team is collaborating with various parties to finalize the remaining payouts.
The update suggested that an additional 40% of refunds might be processed in the coming week, which would bring the total payouts to approximately 75% of all affected wallets.
However, the timeline remains uncertain. Final recoveries may be contingent upon liquidity conditions, legal pressures, and the management of remaining on-chain assets. Many affected users continue to express skepticism due to the prolonged delays and the absence of third-party oversight.