Leading crypto venture capital firm Big Brain Holdings issued a statement denying allegations that it invested in the decentralized casino network ZKasino, amidst claims of fraudulent activities surrounding the project’s recent launch. Contrary to previous statements by ZKasino, Big Brain Holdings declared it never invested in the project.
Big Brain Holdings’ Statement on ZKasino
It was known that over the weekend, reports had emerged showing Big Brain Holdings and MEXC exchange received investments from ZKasino as part of its $26 million Series A funding round. Despite being offered a token distribution by ZKasino, Big Brain Holdings declined and stated it made no investments in the project.
The team at Big Brain Holdings emphasized on April 21st that they were not involved in the ZKasino project in any way, rejecting the proportional token distribution offered by the project. Additionally, it was announced that an investment was made in the ZigZag exchange, whose founders later joined ZKasino.
This statement from Big Brain Holdings comes amidst growing concerns within the cryptocurrency world about fraudulent behaviors and activities surrounding ZKasino.
$33 Million Converted to ZKAS Tokens
Following the announcement that ZKasino users deposited over $33 million in ETH with the expectation of receiving bonus ZKAS tokens during the launch, it was revealed that the project changed plans and converted the ETH to ZKAS tokens without users’ consent. The project defends this change as a measure to ensure a smoother transition and enhance user experience. However, the change in plan drew backlash from ZKasino’s launch investors, many of whom demanded an immediate refund of their funds.
Concerns over the legitimacy of ZKasino intensified with allegations of fraudulent activities directed at the project by former colleagues at ZigZag and blockchain analyst ZachXBT. Accusations include embezzlement, non-payment to contractors, and suspicious practices in event reward distributions. These revelations have led to skepticism and criticism within the cryptocurrency community about the timing of Big Brain Holdings’ statement and its failure to address the alleged fraudulent activities before they came to light.
