The zkSync decentralized change mission, ZigZag, has accused the decentralized playing platform ZKasino of fraud, claiming that the cash used to construct ZKasino was stolen from the ZigZag Treasury.
ZigZag founder Kedar Iyer referred to as out ZKasino founders on X, saying: “They might declare they had been taking cash out to pay builders for constructing the ZigZag frontend, then use elements of the cash to construct out ZKasino.”
ZKasino founders, particularly Derivatives Monke, had been accountable for the ZigZag fundraising, the place $15 million was raised and went into addresses managed by ZKasino founders.
“I by no means had management of that cash, so it’s attainable extra of that cash was stolen or went into ZKasino than I used to be conscious of,” mentioned Iyer.
Iyer alleges that “market making” TerraUSD (UST) in opposition to his suggestion and leverage buying and selling on FTX contributed to misplaced funds.
Kedar additional acknowledged that he beforehand demanded recompensation for about $1 million, which went into funding ZKasino to no avail. Due to this fact, ZigZag token holders ought to try to get restitution on their very own.
Furthermore, he mentioned that a number of former ZKasino workers and contractors had contacted him with claims that they hadn’t been paid for his or her work.
Iyer blamed the failure of ZigZag on Derivatives Monke’s “incompetence,” stating that he has been unable to develop ZigZag additional as a result of he ruined the fundraising and destroyed the mission.
One ZigZag worker, by the username Feichi, defended Derivatives Monke, and clapped again at Iyer, saying he has “a lazy perspective in the direction of work.”
Derivatives Monke additionally responded to the tweet, saying that Iyer was making an attempt accountable them for ZigZag’s failure after seeing the success of ZKasino and Syncus, one other platform he based.