ZigZag drama unfolds on heels of fraud allegations

ZigZag drama unfolds on heels of fraud allegations

The zkSync decentralized exchange project, ZigZag, has accused the decentralized gambling platform ZKasino of fraud, claiming that the money used to build ZKasino was stolen from the ZigZag Treasury.

ZigZag founder Kedar Iyer called out ZKasino founders on X, saying: “They would claim they were taking money out to pay developers for building the ZigZag frontend, then use parts of the money to build out ZKasino.”

ZKasino founders, specifically Derivatives Monke, were responsible for the ZigZag fundraising, where $15 million was raised and went into addresses controlled by ZKasino founders.

“I never had control of that money, so it is possible more of that money was stolen or went into ZKasino than I was aware of,” said Iyer.

Iyer alleges that “market making” TerraUSD (UST) against his recommendation and leverage trading on FTX contributed to lost funds.

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