zkLend Launches Recovery Portal for Users Affected by Recent Exploit
zkLend has taken a significant step towards resolving the aftermath of the recent security breach that saw $9.6 million drained from its pools. The decentralized lending protocol officially launched its Recovery Portal on Mar. 5, allowing impacted users to claim their lost funds.
In a post on X, zkLend advised users to verify communications through official channels before accessing their claims. The exploit, which occurred on Feb. 12, prompted zkLend to halt withdrawals and conduct a thorough investigation into the breach.
Following the hack, blockchain security firm Cyvers reported that the stolen funds were bridged to the Ethereum (ETH) network. The hacker attempted to launder the funds through Railgun, a privacy protocol, but was ultimately forced to return the stolen assets to the original address.
Despite zkLend’s efforts to negotiate with the hacker by offering a 10% “white hat” bounty for the return of the remaining 3,300 ETH, the funds were not retrieved by the Feb. 14 deadline. To track down the stolen funds, zkLend has enlisted the help of law enforcement and experts from Binance Security, StarkWare, and the Starknet Foundation.
In response to the attack, zkLend outlined its recovery plan on Feb. 20. Deposits in unaffected pools will receive a full refund, while affected users will receive partial compensation and a claim position in zkLend’s recovery pool. Withdrawals are set to begin two weeks after an audit of the claims portal.
Experts analyzing the incident have suggested that the hack was not a result of a failure in Starknet’s proof system, but rather a flaw in the contract logic. This incident serves as a reminder of the ongoing security challenges faced by the DeFi industry.
While the Recovery Portal offers a path forward for affected users, the way zkLend manages the aftermath of the exploit will be crucial in rebuilding trust with its community. Stay tuned for updates as zkLend continues to navigate through this challenging situation.