ZKsync Security Council Successfully Reclaims $5 Million in Stolen Tokens, Resolves Case Following Hacker Cooperation

The governing body responsible for overseeing the security protocols of ZKsync the ZKsync Security Council reported that the individual associated with the recent breach has cooperatively returned the stolen funds within the safe harbor period established.

The Council reiterated that, as previously communicated, the situation has now been deemed resolved. This outcome reflects a commitment to recovery and operational stability.

The assets are now securely held by the Security Council, and future decisions regarding these assets will be made in accordance with governance processes. A comprehensive investigation report is currently being prepared and will be shared once finalized, as noted in a post on social media platform X.

This update is a result of ongoing efforts to connect with the individual responsible for the recent breach that resulted in the illicit withdrawal of around $5 million in ZK tokens. Earlier this week, the ZKsync Security Council made contact through an on-chain message offering a 10% reward to incentivize the return of 90% of the stolen funds. The Council also assured that if these conditions were met, their cooperation would be acknowledged, and the issue would be resolved without any further actions. This strategy underscores a focus on resolution and recovery instead of extended conflict.

ZKsync Confirms $5M Token Breach Originated from Compromised Admin Account, User Funds Remain Secure

Last week, the ZKsync security team publicly shared that approximately $5 million worth of ZK tokens were illegally taken due to an exploited administrative account. Reports revealed that the assailant gained access to unclaimed tokens associated with a previous ZKsync airdrop. The project reassured its community that user funds remained completely safeguarded and were unaffected at any stage. Furthermore, it was confirmed that the central ZKsync protocol and the ZK token contract were secure, with no additional tokens at risk.

Following the breach, the market value of ZK tokens plummeted by about 20%, likely due to the offloading of the stolen tokens. ZKsync, a Layer 2 scaling solution for Ethereum developed by Matter Labs, launched its token airdrop last year, distributing tokens from a total supply of 21 billion units. While this airdrop significantly broadened token accessibility, it also faced criticism over its distribution methods and challenges in thwarting Sybil attacks, where users create multiple identities to exploit the system.