A recent attack on the zkLend protocol resulted in the loss of nearly $5 million. The incident marks another rise in hacker attacks in the cryptocurrency world.
Hack Attack on zkLend
On February 12, the zkLend protocol was hacked, resulting in the theft of nearly $5 million from the platform on the Starknet network. This attack occurred after a slight decrease in cybercriminal activity in January, according to blockchain security firm Cyvers.
Recovery of Stolen Funds
The stolen assets were quickly transferred to Ethereum and laundered through Railgun, a privacy-focused mixer. However, Railgun's protocols led to the funds returning to the hacker's original address, forcing them to retrieve the stolen funds from the same wallet. zkLend offered the hacker to return 90% of the funds in exchange for immunity and keep 10% as a whitehat bounty.
Rise in Crypto Attacks
Although January 2025 saw a decline in attacks, over $73 million was stolen. In 2024, cybercriminals stole $2.3 billion across 165 incidents, a 40% increase compared to $1.69 billion in 2023. Experts warn of potential increases in attacks in 2025.
The attacks on zkLend and other platforms highlight the need for improved security measures in the crypto world. Some successful fund recoveries show active work towards improving security systems.
