zkLend Hack: $5M Stolen in Starknet Exploit, Team Offers Bounty Deal

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In yet another crypto hacking incident, ZkLend Next generation lending protocol has officially confirmed that it was hacked, resulting in the loss of 3,300 ETH. In an unusual move, zkLend publicly addressed the hacker via an X post, offering a 10% white hat bounty if the remaining 90% of the stolen funds are returned. This translates to the hacker keeping 10% while returning approximately 3,300 ETH to the specified Ethereum address.

CertiK Alert reported that zkLend on Starknet experienced multiple attack transactions, resulting in the theft of approximately $5 million. The stolen funds were bridged to Ethereum via the address 0x04d7191dc8eac499bac710dd368706e3ce76c9945da52535de770d06ce7d3b26.

A Deal to Waive Liability

According to zkLend’s statement, if the hacker agrees with the request and returns the funds, the platform will waive any legal liabilities related to the attack. However, if no response is received by 00:00 UTC on February 14, 2025, zkLend has warned that it will proceed with legal actions, collaborating with security firms and law enforcement to track and prosecute the hacker.

Withdrawals Suspended, Investigation Ongoing

In response to the breach, zkLend has suspended all withdrawal functions on its protocol to prevent further risks. The team is working closely with security firms, including StarkWare Ltd, Starknet Foundation, zeroshadow.io (formerly Chainalysis Incident Response), Binance Security Team, and Hypernative Labs. They are actively tracking the stolen funds and investigating the root cause of the exploit.

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Community Reactions and Concerns

The crypto community has reacted strongly to the incident. A crypto user pointed out that the stolen funds can’t be quickly moved to the mainnet due to the 12-hour withdrawal wait time required by the STARK official bridge. The user emphasized that the project team must ensure the funds are recovered, hinting at suspicions of internal involvement if the recovery fails.

However, zkLend has promised full transparency throughout the investigation. They plan to release a comprehensive post-mortem report once the analysis is complete. The platform reassured its community that user trust remains a top priority, and they are doing everything possible to resolve the situation swiftly and securely.