zkLend, a decentralized finance lending protocol on Starknet, has been breached, resulting in the loss of approximately 3,700 ETH (around $4.9 million). The protocol is working with security firms to track the hacker and recover the stolen funds. zkLend has offered a 10% whitehat bounty to the attacker, requesting the return of the remaining funds in exchange for a legal release from liability.
zkLend, a decentralized finance lending protocol on Starknet , has suffered a major security breach. As a result, it lost approximately 3,700 ETH, worth around $4.9 million.“We are aware of the ongoing security incident on zkLend. The team is now investigating and will provide an update when possible,” the protocol stated. Hours later, they advised users to refrain from depositing or repaying funds while they worked to determine the root cause.
Following the attack, zkLend sought the services of several organizations, including StarkWare, ZeroShadow, Binance Security, and Hypernative Labs, to help track the hacker and recover the stolen funds. It also promised to share a more detailed analysis as soon as a post-mortem was completed. The exploit affected several DeFi strategies linked to zkLend, including STRKFarm’s STRK, USDC, and ETH Sensei strategies, putting withdrawals on ice until the situation gets resolved.
According to blockchain security firm QuillAudits, the perpetrator, identified by the address 0x64…9109, first targeted a specific contract, 0x04…3b26, before siphoning the funds. They then moved the stolen assets to Ethereum, funneling it through the Railgun crypto mixer, a privacy-focused tool often used to obscure transaction trails.by the security platform showed several transactions leading to laundering activity, with 706 ETH, valued at about $1.8 million, already sent through the mixer.
It isn’t the first time protocols on the wrong end of exploits have tried negotiating with bad actors to have funds returned. In March last year, WOOFISimilarly, almost half a year before that, North Korean hackers stole more than $70 million from the CoinEx crypto exchange’s hot wallets, leading the platform toOne Weekly Email Can Change Your Crypto Life.Disclaimer: Information found on CryptoPotato is those of writers quoted.
DEFI CYBERSECURITY CRYPTOCURRENCY STARKNET HACKING
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