More than a week after the Zksync hacking incident, Exploit agreed to the grace and returned a significant portion of the loot.
Despite recovering stolen funds, the network’s power token ZK continues to show bearish feelings.
Zksync hackers return $5.7 million
On April 15th, Ethereum-based layer 2 scalability solution Zksync was hacked. The compromised accounts managed ZK tokens worth $5 million. As reported by Beincrypto, the incident caused a price drop of 16%.
The incident was controversial after some community members noticed some of the data. The revelation compared Zksync to a mantra (OM) leading to a tragic allegation. To some, Zksync responded to the hack by dumping assets at an accelerated pace.
“The ZKSYNC team released 110 million tokens and sold 66 million. ZK prices are against trends as the market recovers. They quickly fell 15%.
This was in contact with embezzlement. However, in recent developments, the ZKSYNC Association has revealed that hackers have returned 90% of their funds and effectively respected the deadlines for safe ports.
The XKSYNC Security Council provided the Hacker with a 10% prize money if the XKSYNC Security Council returned the stolen funds and provided the hacker with a 10% prize money if the Hackers were allowed to return the stolen funds and a 10% prize money if the Hackers were allowed to have a 72-hour window.
“If we return 90% of the funds involved in the exploit to resolve this issue amicably in the spirit of a safe harbor, we are offering a 10% prize for your cooperation,” ZK Nation shared on X.
As it happened, the bad actor listened and moved about $5.7 million to the ZKSYNC Security Council on April 23 over three transfers.
Specifically, I sent two transfers to the blockchain in the Zksync era. The first included sending $1.83 million worth of Ethereum (ETH) to the address of the ZKSYNC Security Council ZKSYNC ERA and sending $2.47 million worth of ZKSYNC tokens.
In the third transaction, the ZKSYNC hackers sent 776 ETH worth around $1.4 million to the ZKSYNC Security Council Ethereum address.
This has made the ZKSYNC Association pledge to release a final report revealing details about the security incident.
Meanwhile, it is worth noting that the hackers followed the instructions given in the letter by the ZKSYNC Security Council. Based on this, the case closes without further action.
It reflects the past Incidents involving a Ronin Bridge hacker who returns $10 million worth of ETH and earns $500,000 Prize money.
However, despite the turn of events, ZK tokens continue to show bearish feelings, down nearly 2% over the past 24 hours. At the time of writing, Zksync tokens were trading for $0.06.
Meanwhile, not all hacking incidents celebrate safe harbor offers. Recently, BYBit launched a prize program that provides up to 10% of the funds recovered to ethical hackers and cybersecurity experts.
This encouraged effort to regain $1.4 billion on stolen assets. Several efforts to regain lost assets have resulted, but the partial recovery is thanks to players from major industry intervention rather than exploits.
Meanwhile, other ecosystems are leveraging prize money programs to enhance security. Charles Hoskinson of Cardano recently provided a $1 million prize to hack a new lace paper wallet to test security.
Similarly, UNISWAP has announced a record-breaking $15.5 million bug prize targeting critical vulnerabilities in V4 core contracts.
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