February 2025 saw another significant hack in the crypto industry as the decentralized lending protocol ZkLend suffered losses over $4.9 million.
Details of the Cyber Attack
On February 12, blockchain security firm Cyvers announced that ZkLend was attacked on the Starknet network, losing $4.9 million. The stolen funds were bridged to Ethereum and laundered via Railgun, but were returned due to protocol policies.
ZkLend's Response Measures
In response to the attack, ZkLend reached out to the hackers, offering a whitehat bounty of 10% of the stolen assets for their return. The team provided their Ethereum address 0xCf31e1b97790afD681723fA1398c5eAd9f69B98C, demanding 90% of the funds back, while threatening further steps to track and prosecute offenders.
Background: Trends in Crypto Attacks
Despite a 44% decrease in hacking incidents, the crypto industry lost $73 million in January 2025. In 2024, there were 165 attacks resulting in $2.3 billion in losses, a 40% increase from $1.69 billion in 2023.
Whether the hackers return the funds to ZkLend remains to be seen, as the team continues to collaborate with security firms and law enforcement agencies.
