ZKsync Falls 15% After $5M Hack and Token Dump Allegations

In Brief:

ZKsync admin account was hacked, losing $5 million in ZK tokens.

Community backlash grows after developers allegedly dumped 66M tokens post-hack.

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ZKsync, the Ethereum Layer-2 protocol, is under fire after confirming a $5 million hack and facing allegations of token dumping by its own team. The project’s ZK token fell over 15% at its lowest point following the news, with only a slight recovery.

According to an official statement, an admin account was compromised and used to access unclaimed airdrop funds. While the team assures users that the protocol and token contracts remain secure, the damage to market trust has been significant.

Compounding the issue, blockchain data revealed that the ZKsync team released an additional 100 million tokens—66 million of which were allegedly sold after the hack. This triggered further criticism, with users accusing the developers of unethical behavior and embezzlement.

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The project is expected to release a full statement addressing the hack and token sale controversy. Until then, investor sentiment remains strained, and the future of ZKsync’s reputation hangs in the balance.

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