A significant security breach has struck the ZKsync protocol, resulting in the theft of tokens worth approximately $5 million. This incident stemmed from a compromised administrative account, triggering a notable drop in the token‘s market price as reactions unfolded.
What Was the Triggering Vulnerability?
On April 15, an attacker exploited a vulnerability while handling the airdrop contract, specifically through a function called “sweepUnclaimed()”. This led to the creation of about 111 million unclaimed tokens, which the assailant subsequently transferred out.
How Did the Team Respond to the Breach?
The seized tokens represented roughly 0.45% of the total supply but only impacted the airdrop distribution contract. Fortunately, other smart contracts within the ZKsync ecosystem remained unaffected. The ZKsync team has assured users that their assets are secure and have since restored the protocol’s security measures.
The security team confirmed the incident was isolated, stating, “All user funds are secure and not at risk.” Following the attack, they have taken additional measures to enhance protocol security.
Investigations have led to the identification of the attacker’s account, and the team is actively working with authorities to recover the stolen tokens while negotiating with the attacker for their return.
In the wake of the breach, the market reacted sharply with the token experiencing an initial 20% price drop, later stabilizing at around 12% below its peak for the day. This surge of tokens into circulation raised alarm among market participants, particularly given the recent collapse of OM Coin.
- Attack stemmed from a vulnerability in the airdrop contract.
- 111 million unclaimed tokens were minted and stolen.
- Other smart contracts within the protocol remain secure.
- Market price dropped initially by 20%, later stabilizing at a 12% decline.
- Recovery efforts are underway with authorities involved.
As recovery efforts progress, stakeholders must remain vigilant and informed about developments. Market perceptions are undergoing scrutiny, and decisions made in response to this breach may significantly influence future investor actions.
