{"id":24929,"date":"2025-06-25T21:25:21","date_gmt":"2025-06-25T18:25:21","guid":{"rendered":"https:\/\/forklog.com\/en\/zklend-protocol-shuts-down-following-cyberattack\/"},"modified":"2025-06-25T21:25:21","modified_gmt":"2025-06-25T18:25:21","slug":"zklend-protocol-shuts-down-following-cyberattack","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/zklend-protocol-shuts-down-following-cyberattack\/","title":{"rendered":"zkLend Protocol Shuts Down Following Cyberattack"},"content":{"rendered":"<p>The team behind the L2 protocol zkLend, built on Starknet, has announced its closure. The decision follows a hack and the delisting of the LEND token from major exchanges.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Dear zkLend Community,<\/p>\n<p>It is with a heavy heart that we announce our decision to wind down zkLend.<\/p>\n<p>This decision was not made lightly. Over recent months, the exploit we suffered has deeply eroded user confidence, and furthermore, the recent removal of ZEND from major exchanges\u2026<\/p>\n<p>\u2014 zkLend (@zkLend) <a href=\"https:\/\/twitter.com\/zkLend\/status\/1937819644942811361?ref_src=twsrc%5Etfw\">June 25, 2025<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In February, the project <a href=\"https:\/\/forklog.com\/en\/news\/compromised-zklend-protocol-offers-hacker-960000-reward\">faced<\/a> a cyberattack, resulting in the loss of approximately 3666 ETH ($9.6 million at the time of the incident). The team offered the hacker a 10% reward for returning the assets, but the perpetrator <a href=\"https:\/\/forklog.com\/en\/news\/hacker-claims-loss-of-2930-eth-on-phishing-site-after-zklend-breach\">reported<\/a> losing 2930 ETH on a phishing site.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cSuch developments significantly limit our ability to effectively allocate funds to any new initiatives,\u201d the statement said.<\/p>\n<\/blockquote>\n<p>The project is using the remaining treasury funds ($200,000) to support affected users who have not yet received compensation. In total, $400,000 has been <a href=\"https:\/\/forklog.com\/en\/news\/zklend-allocates-400000-for-compensation-plan-following-hack\">allocated<\/a> for this purpose.<\/p>\n<p>Representatives of zkLend considered this step \u201ca more responsible and meaningful use of resources than relaunching money markets and continuing development.\u201d<\/p>\n<p>The protocol team will keep the compensation portal, The DeFi Spring service, and the kSTRK staking platform active for asset withdrawal.<\/p>\n<p>The project also continues its collaboration with zeroShadow, who assist in tracking and recovering stolen funds. Any potentially recovered coins will be directed to the recovery fund.<\/p>\n<p>For interested third-party teams, zkLend has opened the protocol&#8217;s source code, updated after the attack.<\/p>\n<p>Earlier in May, DeFi platform Alpaca Finance, once a leader in the BNB Chain ecosystem, <a href=\"https:\/\/forklog.com\/en\/news\/alpaca-finance-to-cease-operations-by-2025\">announced<\/a> a complete shutdown by December 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The team behind the L2 protocol zkLend, built on Starknet, has announced its closure. The decision follows a hack and the delisting of the LEND token from major exchanges. Dear zkLend Community, It is with a heavy heart that we announce our decision to wind down zkLend. This decision was not made lightly. Over recent [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":24928,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[83,44,1424],"class_list":["post-24929","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-business","tag-cybercrime","tag-protocols"],"aioseo_notices":[],"amp_enabled":true,"views":"101","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/24929","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=24929"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/24929\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/24928"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=24929"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=24929"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=24929"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}