ZKsync Security Council Recovers $5M In Stolen Tokens, Closes Case Following Hacker Cooperation
In Brief
ZKsync Security Council confirmed that the individual behind a recent $5 million token breach has returned the funds within the safe harbor period, leading to a resolution of the case.
Governance authority overseeing the security framework of ZKsync, the ZKsync Security Council, conveyed that the individual involved in the recent security incident has cooperated and returned the compromised funds within the designated safe harbor timeframe.
The Council emphasized that, in line with its earlier communication, the matter is now regarded as resolved. This resolution suggests a collaborative approach was taken, prioritizing the swift recovery of assets and system stability.
“The assets are now in the custody of the Security Council, and the decision on what will be done with the assets will be made by governance. The final investigation report is being prepared and will be published once completed,” it noted in a post on social media platform X.
The update follows efforts to establish communication with the individual responsible for a recent security breach that led to the unauthorized withdrawal of approximately $5 million in ZK tokens. Earlier in the week, the ZKsync Security Council had reached out through an on-chain message, proposing a 10% bounty incentive if the individual returned 90% of the exploited funds. The Council also assured that, should the conditions be met, the cooperation would be recognized and the matter concluded without pursuing additional measures. This approach highlights a strategy focused on recovery and resolution rather than prolonged confrontation.
ZKsync Confirms $5M Token Breach Via Compromised Admin Account, User Funds Unaffected
Last week, the ZKsync security team disclosed via social media that approximately $5 million worth of ZK tokens had been misappropriated due to a compromised administrative account. Reports indicated that the attacker accessed unclaimed tokens linked to a previous ZKsync airdrop. Despite the incident, the project reassured the community that user assets remained completely secure and were not affected at any point. Additionally, it was clarified that the core ZKsync protocol and the ZK token contract were not compromised, and no further tokens were at risk.
Following the breach, the market value of ZK tokens saw a drop of about 20%, a decline likely influenced by the sell-off of the stolen assets. ZKsync, a Layer 2 scaling solution for Ethereum developed by Matter Labs, had launched its token airdrop last year, distributing from a total supply of 21 billion tokens. While the airdrop expanded token access, it also drew criticism regarding its distribution model and challenges in preventing Sybil attacks, where individuals manipulate the system by creating multiple identities.
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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.
