A scammer who stole over $40 million from investors through a fake gambling platform called ZkCasino has suffered a significant financial blow. According to reports, the individual’s highly leveraged bet on Ethereum (ETH) was liquidated on the Hyperliquid platform, resulting in a loss of $27.1 million. The incident highlights the risks of investing in unregulated platforms and the importance of verifying the legitimacy of investment opportunities.
Hacker Loses $27.1 Million
The scammer had promised investors they could recover their investments within 30 days, but it appears that the scheme ultimately backfired. The ZkCasino hacker, who had stolen $40 million from the platform, attempted to launder the funds through various crypto exchanges.
However, their plan backfired when they took out a large loan on the lending platform and used the stolen funds as collateral. As the market fluctuated, the hacker’s collateral was liquidated, resulting in a loss of $27.1 million.
A Loud Call for Caution
ZkCasino utilizes zero-knowledge proof technology to ensure fairness and randomness in game outcomes, providing a secure experience for players. ZkCasino features a blockchain-based roulette game, allowing players to bet and win in a decentralized environment.
Exploitation has almost become a continuous issue to the decentralized crypto ecosystem, with the scourge degenerating from bad to worse, as hackers now fall victim to their craft. For instance, a few days ago, the decentralized lending protocol zkLend was exploited in a February attack that saw it lose 2,930 ETH, valued at approximately $5.4 million. In a surprising twist, the hacker had a taste of his own medicine, falling victim to a phishing attack while trying to launder the stolen funds via Tornado Cash.
Also, UPCX, a prominent blockchain platform, suspended its operations after falling victim to a $70 million hack. Blockchain security firm Cyvers confirmed the attack.
Cyvers revealed that the attackers gained unauthorized access to a key account address on the UPCX platform, 0x4C….3583E, which allowed them to take control of the ‘ProxyAdmin’ contract, which manages essential parts of the platform. The hack has dealt a severe blow to the platform’s reputation and raised concerns about the security and integrity of blockchain systems.
