Vitalik Buterin, co-founder of Ethereum (CRYPTO:ETH), has criticised ZKasino, a blockchain gambling platform, for allegedly misusing zero-knowledge (ZK) proofs, following a rug-pull incident resulting in a reported $32 million loss.
Buterin warns against dishonest entities exploiting emerging technologies like ZK proofs as buzzwords for fraudulent activities.
ZKasino faced serious allegations from ZigZag Exchange, accusing its developers of diverting development funds for personal use, leading to cancellation of token listings by major crypto exchanges like MEXC and Ape Terminal.
Despite promises to return bridged Ethereum and assurances of a delayed launch, ZKasino's reputation has suffered, with investors and community members feeling betrayed by the platform's handling of the situation.