ZigZag drama unfolds on heels of fraud allegations

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The zkSync decentralized alternate mission, ZigZag, has accused the decentralized playing platform ZKasino of fraud, claiming that the cash used to construct ZKasino was stolen from the ZigZag Treasury.

ZigZag founder Kedar Iyer referred to as out ZKasino founders on X, saying: “They’d declare they had been taking cash out to pay builders for constructing the ZigZag frontend, then use components of the cash to construct out ZKasino.”

ZKasino founders, particularly Derivatives Monke, had been chargeable for the ZigZag fundraising, the place $15 million was raised and went into addresses managed by ZKasino founders.

“I by no means had management of that cash, so it’s doable extra of that cash was stolen or went into ZKasino than I used to be conscious of,” stated Iyer.

Iyer alleges that “market making” TerraUSD (UST) in opposition to his suggestion and leverage buying and selling on FTX contributed to misplaced funds. 

Kedar additional said that he beforehand demanded recompensation for about $1 million, which went into funding ZKasino to no avail. Subsequently, ZigZag token holders ought to try and get restitution on their very own.

Furthermore, he stated that a number of former ZKasino staff and contractors had contacted him with claims that they hadn’t been paid for his or her work.

Iyer blamed the failure of ZigZag on Derivatives Monke’s “incompetence,” stating that he has been unable to develop ZigZag additional as a result of he ruined the fundraising and destroyed the mission.

One ZigZag worker, by the username Feichi, defended Derivatives Monke, and clapped again at Iyer, saying he has “a lazy perspective in the direction of work.”

Derivatives Monke additionally responded to the tweet, saying that Iyer was attempting accountable them for ZigZag’s failure after seeing the success of ZKasino and Syncus, one other platform he based.

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