ZKsync recovers $5M in stolen tokens as hacker returns bounty – Funds restored after security incident.

The ZKsync Association has successfully recovered $5 million worth of stolen tokens following a security incident involving its airdrop distribution contract on April 15. The hacker agreed to a 10% bounty and returned 90% of the stolen tokens, transferring almost $5.7 million across three transfers on April 23. The ZKsync Association expressed satisfaction with the hacker’s cooperation and fund return within the safe harbor deadline. Matter Labs, the company behind the ZKsync protocol, also shared the news. It was confirmed that no user funds were compromised during the incident. The hacker made two transfers on the ZKsync Era blockchain, sending ZK tokens and Ether to the ZKsync Security Council’s addresses. Another transfer sent Ethereum to the council’s Ethereum address, as per Etherscan data. The breach occurred through ZKsync’s admin account, allowing the hacker to exploit the airdrop distribution contract’s function to mint unclaimed tokens. The recovered amount exceeded the stolen sum due to token value increases since the attack. ZKsync Era is an Ethereum layer 2 solution with significant value locked and real-world assets onchain. Despite the recovery, the ZK token did not see a substantial rise in value post-incident. For more information on ZKsync and its roadmap, visit the provided links.

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