ZkCasino’s Scammer Loses $21M After Setting 20x ETH Long Position on Hyperliquid

Blockchain platform Onchain Lens has reported that the scammers behind the ZkCasino scam, previously responsible for stealing over $40 million, have suffered a significant financial setback while trading ETH on hyperliquid platforms.

The scammer’s 20x leveraged long position on Ethereum (ETH) on the Hyperliquid platform was fully liquidated, resulting in a total loss of $27.1 million.

ZkCasino Previous Scam

In an April 20th announcement coinciding with the network’s launch, ZKCasino revealed a deviation from its original plan. Over 10,000 users had collectively bridged 10,515 Ether (ETH) to the network, anticipating the return of their ETH as initially promised in exchange for ZKCasino (ZKAS) tokens.

Notably, in April 2024, the platform lured investors with the false promise of getting their money back in just 30 days.

ZKasino stated that it had converted all bridged ETH to ZKAS at $0.055 per token, subject to a 15-month vesting schedule. The project justified this change as a “favor” to facilitate a “seamless transition,” citing the chain’s incompatibility with ETH. Users discovered the removal of a statement on the ZKasino website assuring the return of the deposited ETH, which compounded their concerns.

The platform’s problems go beyond its recent closing. ZigZag, a trading platform in the zkSync system, has spoken out about its business practices. ZigZag pointed out many claims of unpaid bills and dishonest actions against the ZkCasino team.

Hacker Loses Funds to Phishing Scam

Similarly, the hacker who attacked DeFi lender zkLend recently said they lost many of the stolen funds in a phishing scam. The hacker lost the ETH while trying to hide them using Tornado Cash, a popular crypto mixer, after Railgun didn’t work.

In a message to the zkLend team, the hacker said they put 2,930 ETH into a fake Tornado Cash website. They soon realized they had been scammed. Interestingly, even though the hacker had ignored zkLend’s requests to return most of the stolen money, they contacted the team to admit their mistake.

The hacker admitted they tried to move the funds but mistakenly used a phishing website, consequently losing them. However, after apologizing for the attack, the hacker asked zkLend to try to get the money back from the people running the phishing site. But the team told the hacker to return the remaining stolen ETH they still had.

The post ZkCasino’s Scammer Loses $21M After Setting 20x ETH Long Position on Hyperliquid appeared first on Cointab.