Online gambling platform ZKasino has been accused of fraudulent activities, leaving its users and investors in shock. The decentralized P2P order book exchange, ZigZag, has raised concerns about ZKasino's financial practices, alleging that funds intended for project development were misused for personal gain.

ZigZag claimed that ZKasino's founders, who have access to the ZigZag Treasury, diverted the initial funds for their own purposes. Additionally, ZKasino failed to pay developers and contractors who worked on the platform. ZigZag also stated that the $40 million ecosystem fund announced by ZKasino is not real and will likely never be paid out.

The crypto community became more suspicious when ZKasino users raised concerns about the platform's removal of a previous commitment to return bridged Ethereum. However, it is unclear whether this is a rugpull or just FUD. ZKasino has not yet confirmed or denied the allegations.

The crypto space has seen an increase in scams recently, with the Hong Kong authorities arresting 72 individuals in connection to the JPEX Exchange rug pull that happened last year. Therefore, users are advised to stay vigilant and conduct due diligence before investing in any crypto project.

MEXC, a crypto trading platform that participated in ZKasino's Series A funding round, has distanced itself from the platform. MEXC claimed that it was not aware of the rugpull and is only one of ZKasino's investors who fell victim to its tactics. Another investor, Big Brain Holdings, acknowledged that most of the previous founders of the Zigzag project are now part of the ZKasino team, which appears to be fraudulent.

Big Brain Holdings also stated that its investment in Zigzag led to a financial loss, although it was not directly invested in ZKasino. The firm only had a pro-rata token distribution offer, which it has no plan to receive due to the recent turn of events. More firms are expected to publicly renounce their commitment to ZKasino in the coming days.