zkLend Hack Highlights Growing Crypto Security Risks Despite Decrease in Exploits
On February 12, decentralized lending platform zkLend fell victim to a significant security breach, resulting in the theft of approximately $9.5 million from its protocol on the Starknet network.
The stolen funds were transferred to Ethereum and subsequently laundered through the Railgun privacy protocol. However, due to Railgun’s built-in safeguards, the funds were returned to the original address after being flagged.
In response to the exploit, zkLend offered the attacker a 10% reward, urging them to return the remaining funds. The platform also warned of legal action if the stolen assets weren’t returned by February 14, 2025. The incident highlights ongoing vulnerabilities in the crypto sector, despite a decrease in hacks compared to January 2024, which still saw over $73 million stolen across the industry.
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Experts are concerned that 2025 could see a resurgence in major hacking incidents, echoing 2024’s alarming rise in crypto-related thefts, which totaled $2.3 billion. Despite some instances where attackers returned funds, such as a notable $71 million Ether return in May 2024, the crypto space remains a target for cybercriminals.
Security solutions are evolving to combat such exploits, with firms like Cyvers developing offchain transaction validation methods that could potentially prevent up to 99% of future attacks. These proactive measures aim to mitigate risks before they escalate into major breaches.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
