ZKsync, an Ethereum zero-knowledge Layer-2 scaling solution, has confirmed a security incident which involves a compromised admin account linked to its recent token airdrop.
According to the post on social media platform X (formerly known as Twitter), approximately $5 million worth of ZK tokens have been accessed by the hackers. In the post, ZKsync assures that the users funds remain safe and were never at any risk.
A compromised key which was related to the ZK token airdrop contract is the main reason for this hack. ZKsync has highlighted the fact that the breach is isolated. The project also pointed out that their main protocol and ZK token contract have not been affected and are secure.
This indicates that the core of the ZKsync is secure and the vulnerability was limited to a specific administrative access point.
Ongoing Investigation
Zksync is conducting an ongoing investigation into the matter and promises to release a detailed report later. The project is said to be taking necessary actions to prevent any such incidents in the future. The approach is essential in maintaining a trust within the community.
This incident did not affect the user funds, if it had, the community would have lost its trust and confidence within the project and might have had far-fetched consequences.
Market Impact
After the security breach was confirmed by the ZKsync team on social media platform X, the price of ZK token dropped by approximately 15%. The token price was affected even though the security breach did not affect the user funds in any way. This indicates that the cryptocurrency market is highly sensitive to security news.
At press time, the price of ZK token stands at $0.04405 with a drop of 14.4% in the last 24 hours as per CoinGecko.
Background on ZKsync
ZKsync has recently faced criticism for its anti-Sybil measures during the token airdrop. Critics argued that the distribution was susceptible to exploitation by entities that were using multiple wallets to unfairly claim tokens. However, the current situation is not related to these concerns but is focused on the compromised admin account.
Even though the situation has raised security concerns, but ZKsync’s swift response and assurance of user safety are the sole reasons that mitigated a potential long-term damage to the project.
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