The scammers behind Zkasino Lagpur reportedly lost more than $27 million in high-risk Ethereum trade as turbulence in the crypto market continues to catch traders who have grown excessively.
On April 7, Onchain Lens, Blockchain Analytics platform, revealed that the scammers have ended their long, 20x leveraged positions on ETH using the high lipid trading platform.
The set-off is believed to be attributed to Ethereum’s recent price correction amid the wider market slump caused by the US, which decided to implement mutual tariffs on 180 countries.
According to Encryption Data, Ethereum fell almost 20% in the last 24 hours, lowering to $1,415 before attempting to recover above $1,500. ETH was trading at $1,537 at press time.
Much of the crypto universe considers Zkasino Scammer’s recent trading losses as “karma doses.”
The fraudster’s loss will file lawsuits from March 31 when the hackers behind the $9.6 million Zklend Exploit lost 2,930 ETH to a phishing site mimicking tornado cash. The individual also ignored the offer of a prize from Zklend.
Zkasino scam
The funds used in the trade are believed to come from previous exploits linked to Zkasino that occurred in 2024. The platform faced widespread rebound after running a lag pull that emitted $33 million in Ethereum from users.
Zkasino’s move has sparked intense criticism across the industry. Ethereum co-founder Vitalik Buterin criticized the project, claiming that the use of “ZK” branding was misleading and was based solely on its deployment to ZKSYNC.
In response to the rebound, Zkasino has pledged to refund investors’ funds, claiming that they will act on the interests of the users by converting ETH into ZKAS tokens and locking them under a 15-month vesting schedule.
However, the promised refund has not been realized at the time of reporting.
Meanwhile, the Dutch Financial Information Investigation Service (FIOD) later arrested a 26-year-old man suspected of being involved in the scheme. Authorities seized approximately $12.2 million worth of digital assets, luxury cars and real estate.
