ZKasino, a DeFi platform recently involved in controversy, has announced plans to reimburse investors for stolen funds on a 1:1 basis. Dutch authorities accused the platform of embezzling $30 million in user deposits, prompting ZKasino to introduce a new "2-step backbridge process" for investors to reclaim their Ethereum (ETH), according to a May 28 blog post.

The announcement follows the arrest of a 26-year-old Dutch man allegedly connected to ZKasino under the pseudonym "Derivatives Monke." Charges against him include fraud, embezzlement, and money laundering. Authorities seized assets valued at €11.4 million, including real estate, a luxury car, and various cryptocurrencies.

Despite ZKasino's pledge to refund investors, skepticism remains widespread. Concerns linger about the platform's lack of direct communication with Dutch authorities and the sudden refund offer, particularly given the brief 72-hour window provided for investors to sign up, which skeptics fear may limit recovery opportunities and potentially replicate another scam.

Notably, the platform's blog post did not address staking rewards earned from user deposits. Records indicate that after the "Bridge-to-Earn" program concluded, ZKasino converted investors' ETH into Lido's Wrapped Staked Ether, generating estimated staking rewards exceeding $100,000 amidst rising ETH prices.

Community members have raised questions about the need for a separate refund process and the authenticity of ZKasino's communications, particularly given the circumstances surrounding the jailed developer, Derivatives Monke.

The controversy surrounding ZKasino began in March with its "Bridge-to-Earn" program, which offered rewards for locking up ETH temporarily. However, when the redemption period arrived in April, ZKasino withheld approximately $30 million in deposits, leading to allegations of fraud from investors and authorities alike.

As the 72-hour deadline approaches for investors to participate in the refund process, the crypto community remains watchful for how ZKasino will handle the situation amid ongoing legal and reputational challenges.