In a shocking breach on Tuesday, an attacker compromised a ZKsync admin wallet and made off with $5 million worth of ZK tokens, all of which were unclaimed airdrop assets.
ZKsync Confirms Core Protocol Safe After Admin Key Exploit
According to them, the exploit was isolated to the airdrop contract, stemming from a hacked admin key. Fortunately, the main protocol and the core ZK token smart contract remained fully secure, with no user funds affected.
The Ethereum Layer-2 platform quickly responded on social media, stating that new security protocols are being deployed to mitigate further risks. The incident was labeled as “contained,” but the damage was already done—with ZK token prices dropping 11% in just 24 hours.
Interestingly, trading volume surged by 143%, hitting $87 million, as traders reacted to the breach with both panic and profit-taking moves.
ZKsync’s security team has reportedly acted swiftly to block additional breaches and has launched a full-scale investigation. A detailed update has been promised as the inquiry progresses.
As the dust settles, all eyes are on ZKsync to restore trust and strengthen key access security moving forward.
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