zkLend, a decentralized money market and lending protocol built on Starknet’s zero-knowledge rollup, has confirmed that it was the victim of a significant hack, resulting in a loss exceeding $9 million. In a bid to recover the stolen funds, zkLend has made an unusual offer to the hacker: a 10% “white hat” reward for the return of the remaining 90% of the stolen assets.
The total amount of stolen funds, estimated at 3,300 ETH (approximately $8.4 million), was taken from the platform after an exploit took place, which allowed the attacker to drain the funds. In response, zkLend immediately suspended withdrawal functions to prevent further losses, and the team is actively investigating the nature of the hack to understand how it occurred and how the attacker gained access.
To avoid escalating the situation legally, zkLend communicated directly with the hacker through an on-chain message. The protocol emphasized that no legal action would be taken if the stolen funds are returned. “Upon receiving the transfer, we agree to release from any and all liability regarding the attack,” the message stated.
The specifics of how the hack was executed remain unclear at this time, but experts suspect the attacker may have exploited a vulnerability within zkLend’s smart contract code. The zkLend team is collaborating with other cybersecurity teams and tracking the stolen funds in an effort to trace the hacker’s identity.
At present, zkLend has a total value locked (TVL) of over $1.2 million, with $14.6 million in borrowed funds, according to data from DeFiLlama. While the platform continues to investigate and engage with the hacker, the community remains hopeful that this resolution strategy will lead to the safe return of the stolen assets.
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