ZkLend, a decentralized money lending protocol, recently fell victim to a Starknet network exploit resulting in a loss of $4.9 million. The breach marks a resurgence in crypto-related hacks after a decline in January. The stolen funds were transferred to Ethereum and then laundered through Railgun. However, due to Railgun’s protocol policies, the funds were eventually returned to their original address.
In response to the attack, zkLend has offered the perpetrator a 10% bounty if they return the remaining funds before February 14, 2025. The protocol stated that the hacker could keep the 10% as a “whitehat bounty” while urging them to send back the remaining 90%, equivalent to 3,300 ETH. ZkLend emphasized that they are collaborating with security firms and law enforcement to track the attacker and that legal steps would be taken if no response is received by the deadline.
This incident contributes to the growing concern over security in the crypto industry, as January 2025 alone saw over $73 million stolen despite recording a 44% year-over-year decrease in hacks. Last year, hackers made off with $2.3 billion across 165 breaches, showing a significant rise from $1.69 billion in 2023. Experts warn that these figures might rise further, continuing the trend of high-value crypto thefts. This remains a developing story, and further updates are expected as additional information becomes available.
