$27 million lost in ZKasino scam due to Ethereum price drop, leading to liquidation

From Cointelegraph

April 7, 2025 08:31 AM:

A wallet linked to the $40 million ZKasino scam lost over $27 million after a leveraged position was liquidated, resulting in what some call karmic justice. ZKasino transferred $33 million in user ETH to Lido Finance instead of returning funds, and the wallet was liquidated for $27.1 million after ETH’s price decline.

Following record-breaking sell-offs in traditional equity markets, a crypto market correction occurred, with ETH’s price dropping to a nearly two-year low of $1,480 in May 2023. An unidentified crypto whale made a $14 million emergency deposit to avoid a $340 million Ether liquidation earlier on April 7.

ZKasino, accused of running an exit scam, initiated a 72-hour process to return funds to investors a month after transferring user funds to Lido. Despite promises to return funds, ZKasino still hasn’t returned the ETH nearly a year after the incident, leaving investors in limbo. Dutch authorities arrested a suspect in the scam, but the situation remains unresolved.

Read more at Cointelegraph: ZKasino scammer loses $27M as Ethereum price drops