ZKasino, a DeFi platform recently involved in controversy, has announced plans to reimburse stolen funds to investors at a 1:1 ratio. Dutch authorities recently charged the platform with embezzling $30 million in user deposits. In a blog post on May 28, ZKasino introduced a "2-step backbridge process" for investors to reclaim their Ethereum (ETH).

The announcement follows the arrest of a 26-year-old Dutch man associated with ZKasino earlier in May, facing charges of fraud, embezzlement, and money laundering. The man allegedly operated under the pseudonym "Derivatives Monke," linked to ZKasino's development.

Dutch authorities have seized assets totaling €11.4 million, including real estate, a luxury car, and various cryptocurrencies.

Despite ZKasino's pledge to refund, investor confidence remains low due to concerns about the lack of direct communication with authorities and the sudden refund offer. Critics argue that the 72-hour window provided for investors to sign up for refunds may hinder many from recovering their deposits and raise suspicions of another potential scam.

The blog post did not clarify the status of staking rewards earned from user deposits. Records indicate that following the conclusion of the Bridge-to-Earn program, ZKasino converted investors' ETH into Lido's Wrapped Staked Ether, generating estimated staking rewards exceeding $100,000 given current ETH prices and staking yields.

Questions linger within the community regarding why investors must undergo another process instead of receiving direct refunds. Some have also questioned the authenticity of the blog and related social media posts, particularly how communications purportedly from "Derivatives Monke" are being managed from jail.

The issues surrounding ZKasino began with its Bridge-to-Earn program in March, which promised rewards for locking up ETH temporarily. When the redemption period commenced in April, ZKasino withheld around $30 million in deposits, leading to allegations of fraud both from investors and Dutch authorities.

While ZKasino asserts its legitimacy, the combination of legal troubles, investor skepticism, and the recent refund initiative has left many unresolved questions. As the deadline for the refund process approaches, the cryptocurrency community is closely monitoring whether ZKasino will uphold its commitments or face further complications.