A wallet associated with a gambling platform that defrauded its users of over $30 million in 2024 experienced a loss of $27.1 million after liquidating a long position on Hyperliquid.
On-chain data from Hyperdash reveals that the fraudulent address tied to the blockchain betting site saw its 20x leveraged long position in ETH completely liquidated. Consequently, the trader faced a significant loss estimated at $27.1 million. Nevertheless, the trader retained around $147.38 in unrealized gains and losses.
This wallet is connected to a scammer behind a blockchain gambling scheme that reportedly swindled approximately $32 million last year. Reactions from traders on the social media platform X were largely favorable, with many asserting that the scammer received their just desserts.
“A scammer gets a dose of karma,” commented Onchain Lens in a recent post about the liquidation.
“Karma is real!” added another user on X.
In a separate instance, another user identified the scammer by disclosing their full name and passport image, along with pictures of their mother and sister. This user also tagged prominent figures such as Donald Trump, Elon Musk, and the FBI, attempting to alert them to the situation.
Overview of ZKasino
ZKasino was developed as a betting and gambling platform, utilizing a decentralized gambling approach on the Ethereum-based layer-2 blockchain, ZKsync. The platform operated with its native token, ZKAS, and boasted approximately 75,000 followers on its official X account.
In April 2024, the platform faced widespread backlash from users who argued that it had not returned their Ethereum funds two months after their initial deposits. Many users accused the platform of being a scam since it accepted ZKAS tokens but failed to provide the promised returns.
In light of this backlash, the ZKasino team assured users that they would receive refunds after the launch of a ZKasino mainnet. However, the mainnet was never released, and users were left without their Ethereum. This resulted in a collective loss exceeding $30 million in ETH for its users.
Furthermore, Kedar Iyer, founder of the ZKsync DEX project ZigZag, alleged that the ZKasino team defrauded former contractors and employees by failing to compensate them for their contributions in building the platform.