A security breach on February 12 led to the loss of nearly $5 million from zkLend, a decentralized lending protocol on Starknet.
Cyvers, a blockchain security firm, reported that the stolen funds were transferred to Ethereum
$2,672.67
and funneled through Railgun
$0.7216
. However, due to Railgun’s policies, the money was sent back to the original address.
In a February 12 post on X, Cyvers confirmed, “zkLend has suffered a $4.9 million exploit on the Starknet network. Stolen funds were bridged to Ethereum and laundered via Railgun, but due to protocol policies, the funds were returned to the original address by Railgun!”
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In response, zkLend attempted to recover the funds by offering the attacker a deal. They proposed that the hacker could keep 10% as a bounty and return the remaining 90%, totaling 3,300 ETH. The team addressed the attacker in a post on X, stating:
We understand that you are responsible for today’s attack on zkLend. You may keep 10% of the funds as a whitehat bounty, and send back the remaining 90%, or 3,300 ETH to be exact.
The company also clarified that they were working with security firms and law enforcement. They added, “If we do not hear from you by 00:00 UTC, 14th February 2025, we will proceed with the next steps to track and prosecute you”.
Meanwhile, a Canadian citizen recently faced US charges for allegedly stealing millions from two decentralized finance (DeFi) platforms. How? Read the full story.
Having completed a Master’s degree in Economics, Politics, and Cultures of the East Asia region, Aaron has written scientific papers analyzing the differences between Western and Collective forms of capitalism in the post-World War II era.With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.
