The zkLend decentralized lending protocol on Starknet has announced the shutdown of its operations following a significant hack and loss of funds.
Reasons for Shutdown
As of June 25, 2025, zkLend revealed its decision to cease operations, a few months after suffering a hack that resulted in over $9.5 million stolen. According to the protocol's statement, the loss of user confidence and the delisting of token ZEND from major exchanges such as Bybit and KuCoin were key reasons behind this decision.
Impact on Users
In light of the challenges, zkLend has decided to focus on user restitution. The protocol plans to allocate $200,000 still held in treasury for recovery efforts for affected users. They also opened portals for unstaking and claims.
Crypto Hack Landscape
The zkLend exploit is part of a troubling trend of increasing thefts in the crypto industry. Experts noted that in 2024, more than 160 incidents were reported, stealing over $2.3 billion. Recent attacks have severely impacted many projects, causing their tokens to plummet in value.
The decision to shut down zkLend emphasizes the significant challenges faced by many decentralized projects amid a rising number of hacks and security vulnerabilities.
