Quick Breakdown
- •Approximately 35% of affected wallets have received partial refunds, with additional batches expected to follow.
- •The collapse affected over 10,000 users, resulting in losses estimated at $33 million.
- •Full recovery remains uncertain due to legal and liquidity constraints.
Refunds Resume After a Long Silence
ZK Casino has re-emerged with a new update after months of inactivity, confirming that it has begun partial repayments to users affected by its widely criticized collapse. The project’s anonymous founder, known as Derivatives Monke, shared the announcement on X on November 10.
We have just processed ~35% of all ETH withdrawal requests for @ZKasino_io bridgers (approx 2500/8000 addresses).
If you are among these ~35%, you will find your ETH either on:
– zkSync Lite: https://t.co/t3mQyR3KQ1 simply connect your regular EVM account and it should be… https://t.co/krNESLUqQ0
— Derivatives Monke (@Derivatives_Ape) November 9, 2025
According to the update, approximately 35% of wallets that bridged ETH to the platform have now received refunds, which were processed through zkSync Lite and zkSync Era. The founder added that further batches are scheduled for the coming week, and some users may receive additional compensation depending on the final balance assessments.
However, users seeking large withdrawals will be required to undergo identity verification, which the founder attributed to legal compliance measures.
Background of the Collapse
ZK Casino launched in April 2024 with a model promising users yield for bridging ETH to a supposed layer-2 environment while still allowing withdrawals at any time. Instead, user deposits were converted into vested ZKAS tokens, while the underlying ETH was staked on Lido.
The move resulted in losses estimated at over $33 million, affecting more than 10,000 users. The project was heavily criticized across the crypto sector, with Ethereum co-founder Vitalik Buterin questioning the platform’s claim of using zero-knowledge technology.
Subsequent on-chain analysis suggested links to previous fraudulent schemes. Dutch authorities later made several arrests, but only a limited portion of the funds was recovered. A 26-year-old individual was arrested by the Fiscal Information and Investigation Service (FIOD) on April 29.
Ongoing Recovery and Skepticism
The founder stated that another 40% of refunds may be processed next week, potentially raising total repayments to about 75% of affected accounts.
Even with renewed progress, the timeline for complete recovery remains unclear. The outcome depends on remaining on-chain assets, legal negotiations, and liquidity conditions.
Many victims remain cautious, citing the lack of third-party oversight and the project’s initial deception.