The Ethereum Layer-2 network ZKfair finds itself at the center of controversy after a $6 million transfer from its cross-chain bridge raised rug pull allegations.
Funds Transfer Causes Suspicion
X user Weiweiyang was the first to notice the suspicious transaction and labeled it as a rug pull. According to him, the team transferred all cross-chain bridge assets to a private address Ox4Ea1f0, which then staked most of the assets on Aave.
>CITE_NA > *“If anyone has cross-chain assets to zkfair, please withdraw them immediately. The project team has rugged up. They transferred all the cross-chain bridge assets to a private address, and all the assets are stored in aave.”*
ZKfair's Response to Allegations
The ZKfair project denied the allegations of rug pull, explaining that the transfer was part of a bridge upgrade. In a post on X, their official account stated that the funds are safe and that their cross-chain bridge has been upgraded to a multi-signature bridge.
> CITE_NA > *“Previously, limited Prover capacity caused slow withdrawals and a suboptimal user experience. To improve efficiency and security, funds are now managed through a multisig setup.”*
Market Reaction to ZKfair Events
The price of the ZKF token has dropped by 14.64% in the last 24 hours, likely due to rumors surrounding the suspicious transactions. Even without the rumors of rug pull, ZKF was already struggling with an 87.12% year-to-date decline and a 43.72% fall in 30 days, according to CoinMarketCap.
The situation surrounding ZKfair continues to evolve, and the project's future will depend on the team's further clarifications and the market's reaction to the current events.
