Amid a decrease in exploits in January 2025, the decentralized lending protocol zkLend was hacked on the Starknet network for $4.9 million.
Incident Details
Blockchain security firm Cyvers reported the exploitation of the zkLend protocol on the Starknet network for $4.9 million on February 12. The stolen funds were bridged to Ethereum and laundered via Railgun, but due to protocol policies, the funds were returned to the original address.
zkLend’s Response
Following the exploit, zkLend offered a bounty of 10% of the total funds for the return of the remaining money. 'You may keep 10% of the funds as a whitehat bounty, and return the remaining 90%', wrote the company. zkLend is also working with law enforcement and security firms.
Is the Crypto Market at Risk?
Despite a 44% decline in attacks in January 2025, thefts continued, resulting in over $73 million losses. Security experts warn of another potential multibillion-dollar hacking year, considering hackers stole $2.3 billion in 2024.
The current incident with zkLend highlights the continued risk facing the crypto market despite the overall decline in the number of attacks. Efforts to strengthen security and cooperation with law enforcement remain crucial.
