ZKX Accused of Rug Pull by Blockchain Sleuth

IconCryptoNewsTerminal Staff31 Jul, 2024

cryptonews.jpg

ZKX Accused of Rug Pull by Blockchain Sleuth

Blockchain sleuth ZkXBT has accused ZKX, a derivatives exchange built on the zk-rollup based Ethereum Layer 2 network StarkNet (STRK), of being a "rug pull" after they announced they were shutting down. ZkXBT pointed out that ZKX had announced a $7.6 million raise last month, and although the raise likely closed before the announcement, the delayed announcement could have been used to encourage people to buy. He also noted that ZKX launched their token less than two months ago. In response to these allegations, ZKX founder Eduard (@0xEduard) tweeted, "The raise was to pay for a 30 person blockchain dev team for 4 years from 2021-2024. Core team members have not sold a single token that was vested to them, so this is not a rugpull." The allegations have sparked a debate on Twitter, with some users supporting ZkXBT's claims and others defending ZKX. It remains to be seen whether the allegations will be proven true, but the incident highlights the importance of investor due diligence.

Related News