ZKasino scammer liquidated $27M

ZKasino scammer liquidated $27M is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• Wallet linked to $40 million ZKasino exit scam liquidated for $27.1 million.
• Scammer moved $33 million of user ETH to Lido Finance in April 2024.

What happened: ZKasino scammer loses $27M in liquidation

On 7 April 2025, blockchain analytics platform Onchain Lens reported a liquidation of $27.1 million. The wallet was linked to a $40 million ZKasino exit scam. ZKasino launched in April 2024 by offering a native token airdrop for bridged Ethereum to its platform. Instead of returning the funds, the team moved $33 million of user ETH to the staking protocol Lido Finance. Nearly a year later, a leveraged 20× ETH position on Hyperliquid was liquidated.

A sharp fall in the Ethereum price triggered the liquidation. Onchain Lens called the loss a “dose of karmic justice”. After the liquidation, affected users still have not recovered their funds. The event followed record sell‑offs in equity markets that led to a crypto market correction. It pushed ETH to a two‑year low of $1,480. Earlier that day, an unidentified crypto whale made a $14 million emergency deposit to avoid a $340 million Ether liquidation. Users and analysts await updates on any recovery efforts.

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Why it’s important

The liquidation highlights risks in the crypto sector. It shows how rapid price falls can wipe out large positions. The event underscores the need for robust risk management. It warns investors of potential losses in exit scams. The case may prompt platforms to strengthen safeguards. Regulators may use this example to guide policy on DeFi. Market participants can learn from the ZKasino collapse timeline. It also shows the value of blockchain analytics in tracking illicit funds. The role of platforms like Hyperliquid and Lido Finance comes under scrutiny.

This event adds data to studies on exit scams and liquidations. Investors and developers must note how leverage increases vulnerability. The loss may deter future scams or improve response strategies. It may also influence insurance and custody solutions. Overall, the liquidation offers a clear lesson in crypto risk management.