Starknet-based lending protocol zkLend has confirmed a significant security breach, resulting in the theft of more than $9 million in Ethereum (ETH).
Starknet-based lending protocol zkLend has confirmed a significant security breach, resulting in the theft of more than $9 million in Ethereum (ETH).
The platform has offered a 10% reward to the hacker, amounting to approximately 660 ETH, in exchange for the return of the remaining stolen funds, which totals 3,300 ETH, valued at around $8.4 million.
In response to the crisis, zkLend has temporarily suspended withdrawal functions to mitigate further risks. The team is actively investigating the mechanisms behind the exploit and is collaborating with other teams to track the stolen assets and identify the perpetrator.
The specifics of the hack are still under investigation, but preliminary analysis suggests the attacker may have exploited a vulnerability in the platform's smart contract code.
ZkLend has communicated directly with the hacker through an on-chain message, stating it will not pursue legal action if the stolen funds are returned. The message included a commitment to release the hacker from all liability upon receipt of the funds.
Currently, zkLend has a total value locked of over $1.2 million alongside $14.6 million in borrowed funds on Starknet layer 2, according to DeFiLlama data.
The protocol had previously raised $5 million in a seed funding round in 2022, led by Delphi Digital, with participation from Three Arrows Capital and StarkWare.
The incident highlights ongoing vulnerabilities within decentralized finance (DeFi) platforms, as similar exploits have been observed across the industry. ZkLend has assured users that it is taking all necessary steps to address the situation and enhance the security of its platform.
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