Starknet-based ZkLend Shuts Down Amid Fallout From $10 Million Exploit

4 months after a major security breach, zkLend is shutting down and allocating $200,000 in staying funds to compensate users.

Home News DeFi Starknet-based ZkLend Shuts Down Amidst Fallout From $10 Million Exploit. ZkLend, a decentralized money-market protocol built on StarkNet and backed by infamous hedge fund Three Arrows Capital, is closing down operations 4 months after suffering an exploit that drained pipes around $9.6 million in user funds. In a June 25 post, the zkLend team mentioned that the February 2025 hack had “deeply eroded user self-confidence” which recent delistings of its token, ZEND, by several cryptocurrency exchanges, consisting of Bybit and KuCoin, further “constrained token liquidity and ease of access.” The group stated it would use the remaining $200,000 in its treasury to compensate users rather than attempt a relaunch. In February, zkLend used the aggressor a 10% white-hat bounty and promised not to take legal action if the remaining 3,300 ETH was returned by Feb. 14. If the deadline passed without a resolution, the group had warned that it would escalate the matter with law enforcement. Hacker Gets Scammed In April, the attacker called zkLend, declaring they had actually lost most of the stolen funds after utilizing a fake Tornado Money site. In a message sent out through Etherscan on March 31, the hacker specified that they had actually erroneously utilized a phishing website and consequently lost 2,930 ETH while trying to transfer the funds. The closure statement did not define whether the group still prepares to pursue legal action versus the hacker, but it pointed out that the group continues to deal with the security company ZeroShadow to recuperate the taken properties. The zkLend group informed The Bold that they have actually been teaming up with police and exchanges because the make use of happened. Regarding the hacker’s claim that they lost the majority of the taken ETH to a phishing scam, the group said they “can not eliminate any possibility of the Twister Cash occurrence, and have actually not discovered any definitive proof one method or another.” “Regardless, we will continue to deal with ZeroShadow, and ought to there be any funds recovered in the process, it will go back to users through the recovery portal, which continues to run after our closure,” they included. ZkLend was launched with backing from Three Arrows Capital, StarkWare, and Delphi Digital. It raised $5 million in 2022 and had prepared to use both institutional and retail-facing lending services through two products, Artemis and Apollo. Our short articles are stored on Filecoin. Related Posts zkLend Hacker ‘Devastated’ After Losing $5.5 Million to Phishing Scam ZkLend Completes Mainnet Release On Starknet Advertisement Get an edge in Crypto with our totally free everyday newsletter Know what matters in Crypto and Web3 with The Defiant Daily newsletter, Mon to Fri 90k+ Defiers notified every day. Unsubscribe anytime.

Home News DeFi Starknet-based ZkLend Shuts Down Amid Fallout From $10 Million Exploit ZkLend, a decentralized money-market procedure constructed on StarkNet and backed by infamous hedge fund 3 Arrows Capital, is shutting down operations four months after suffering an exploit that drained around $9.6 million in user funds. The zkLend group told The Bold that they have been collaborating with law enforcement and exchanges since the exploit took place. Related Posts zkLend Hacker ‘Ravaged’ After Losing $5.5 Million to Phishing Rip-off ZkLend Completes Mainnet Release On Starknet Advertisement Get an edge in Crypto with our free daily newsletter Know what matters in Crypto and Web3 with The Bold Daily newsletter, Mon to Fri 90k+ Defiers notified every day.