An account linked to ZKasino, a gambling platform that stole more than $30 million from its users in 2024, lost $27.1 million after closing a long position on Hyperliquid.

According to on-chain data on Hyperdash, the scammer address behind the blockchain-based betting platform had its 20x leveraged long ETH (ETH) position on Hyperliquid fully liquidated. As a result, the trader lost approximately $27.1 million. However, the trader still had around $147.38 in unrealized profit and losses.

The address is linked to a scammer behind the blockchain gambling platform that reportedly stole around $32 million last year. On the social media platform X, traders reacted positively to the news, with many stating that the scammer got what they deserved.

“A scammer gets a dose of karma,” wrote Onchain Lens in a recent post about the liquidation.

“Karma is real!” said another user on X.

Meanwhile, another user doxxed the scammer by sharing his full name and passport picture as well as the pictures of both his mother and sister. The user also tagged Donald Trump, Elon Musk and the FBI among other major U.S. government accounts in an attempt to alert them.

What is ZKasino?

ZKasino was introduced as a betting and gambling platform a decentralized gambling platform built on the Ethereum-based layer-2 blockchain platform, ZKsync. The platform was powered by its native token ZKAS and has around 75,000 followers on its official X account.

In April 2024, it received widespread backlash from users who claimed that the platform still had not returned their Ethereum funds two months after their initial “signup” deposits. Users at the time accused the platform was a scam, because it only swallowed up ZKAS tokens but did not give them the returns as promised.

Due to this controversy, the team behind ZKasino promised users that it would give them a refund after they launch a ZKasino mainnet. However the mainnet was never launched and users never got their Ethereum back. This resulted in a combined loss of more than $30 million worth of ETH from users.

Not only that, the founder of ZKsync DEX project ZigZag, Kedar Iyer, accused the ZKasino team of defrauding former contractors and employees by not paying them for their work in building the platform.

Bybit CEO Ben Zhou has suggested that the ongoing crypto market liquidation event may be significantly larger than widely reported.

According to CoinGlass data, over $2 billion in digital liquidations in 24 hours on Monday, Feb. 3, marking the single largest liquidation event in crypto history.

Several analysts estimated liquidations exceeded $2.2 billion, surpassing the COVID crash and FTX collapse, two of the most significant liquidation events ever recorded.

Yet, Zhou said the numbers may be underreported due to API limits. According to Bybit’s co-founder, the crypto exchange limits how much data is pushed to aggregators like CoinGlass. Other platforms likely use a similar capped system, Zhou said via X.

Zhou estimated that liquidations on Bybit alone accounted for $2.1 billion in losses, representing over 85% of the total reported figures. “I am afraid that today’s real total liquidation is a lot more than $2 billion. By my estimation, it should be at least $8 billion to $10 billion,” Zhou said.

Following Zhou’s comments, crypto community members debated the accuracy of the reported figures. Some speculated that previous liquidation events, such as the COVID crash and the FTX collapse, may have also been underreported.

Looking ahead, Zhou pledged that Bybit would begin sharing all liquidation data with the public. “We believe in transparency,” he stated, as digital assets reeled from a massive leverage flush.