ZKsync Governance Approves ETH-To-ZK Token Conversion Plan Following April Exploit
In Brief
ZKsync saw community proposal GAP-3 pass with majority support, authorizing the platform’s Security Council to convert recovered ETH into ZK tokens.
Ethereum Layer 2 protocol ZKsync saw community proposal GAP-3 pass with majority support, authorizing the platform’s Security Council to convert recovered ETH into ZK tokens. The ETH in question stems from an April 2025 exploit involving unclaimed airdrop tokens and is currently under the Security Council’s custody following a resolution agreement with the attacker. The proposal permits the restoration of the original ZK token supply via this conversion process.
In order to reduce the risk of arbitrage or manipulation, neither the timing nor the method of conversion will be disclosed beforehand. The Token Assembly has endorsed the plan, delegating authority to the Security Council to carry out the token conversion under governance supervision and with a commitment to post-execution transparency. Upon completion, a public report will detail the execution strategy, results, and asset custody, while confirming that neither the council as an entity nor its members personally profited from the transactions.
ZKsync Recovers 90% Of Exploited Tokens Following April Security Breach
ZKsync, developed by Matter Labs, is a protocol for Ethereum that leverages zero-knowledge rollups to increase transaction efficiency and lower costs while preserving the underlying security of the Ethereum network.
On April 13, 2025, a compromised administrative key was used to mint approximately 111.8 million ZK tokens from expired airdrop distribution contracts. In response, the Security Council conducted an investigation and reached an agreement that led to the return of 90% of the exploited assets. These recovered funds are now held in multisignature wallets controlled by the Security Council across both the ZKsync Era and Ethereum networks.
The associated governance proposal aims to responsibly convert the recovered ETH back into ZK tokens, consistent with the initial distribution plan. By granting the Security Council the authority to manage this process, the approach seeks to mitigate protocol risk while maintaining alignment with the platform’s governance framework.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
