ZKsync's $5M Hack Causes 16% Drop, 66M Tokens Sold Amid Embezzlement Claims

ZKsync, a Layer-2 scalability solution for Ethereum, has recently faced a significant setback with the announcement of a major hack. The project's security team identified a compromised admin account that controlled approximately $5 million worth of ZK tokens. These tokens were part of the unclaimed tokens from the ZKsync airdrop. The team assured that all user funds were safe and that the ZKsync protocol and ZK token contract remained secure.

This incident comes at a time when tensions were already high in the crypto community, following the largest hack in crypto history earlier this year. The disclosure of the $5 million hack led to a significant drop in ZK’s valuation, falling 16% at one point before slightly recovering.

Adding to the controversy, community members noticed that the developers had released an additional 100 million tokens. Since the hack, 66 million of these tokens have been sold, further devaluing ZK. This action has led to serious allegations of embezzlement and unethical behavior. AI and Crypto Investor Yuyue Chris stated, "Issuing additional shares to dump the market is definitely the most disgusting, because it is a direct and unethical way of doing evil. How should we respond? The statement just now by ZKsync is completely perfunctory and cannot get rid of the suspicion of embezzlement."

The community's reaction has been one of confusion and accusation, with many questioning the developers' intentions and the project's future legitimacy. It remains unclear how far the malfeasance extends and whether the developers were complicit in other ways.

ZKsync’s team has promised to release a statement regarding the hack later in the day, hoping to clear up the unanswered questions and determine the project’s future legitimacy.

This incident has severely shaken the community’s trust in ZKsync, and the project’s future remains uncertain. The community awaits further clarification from the ZKsync team to address these serious allegations and restore confidence in the project.