ZKsync gets back $5.7 million in stolen crypto after hacker takes 10% bounty deal

ZK Nation on X: "We’re pleased to share that the hacker has cooperated and returned the funds within the safe harbor deadline. As stated in the original Security Council message, the case is now considered resolved. The assets are now in custody of the Security Council, and the decision on what" 

ZKsync has recovered about $5.7 million in stolen tokens after a hacker agreed to return 90% of the funds in exchange for a 10% bounty.

The tokens were stolen on April 15 during a hack involving ZKsync’s airdrop distribution contract.

The hacker used a function meant for unclaimed tokens to mint 111 million ZK tokens, worth about $5 million at the time.

By April 23, the hacker had sent back most of the stolen crypto, around $5.7 million worth of ZK and ETH across three transfers.

The hacker met the 72-hour deadline set by ZKsync to return the funds without facing legal consequences.

The Initia L1 is the first Cosmos SDK chain utilizing MoveVM and the Move smart contract framework. 

The ZKsync Association and Matter Labs, the team behind ZKsync, confirmed that no user funds were affected. They also said a detailed report on the incident is coming.

The stolen amount was originally worth $5 million, but the recovery total was higher due to a rise in token prices. ZK is up 16.6% and ETH is up 8.8% since the hack.

Despite the recovery, the ZK token’s price has barely moved and is slightly down in the last 24 hours.

ZKsync is a layer 2 scaling solution for Ethereum. It helps process transactions faster and cheaper using zero-knowledge rollups. It currently holds nearly $59 million in locked value and over $2 billion in real-world assets.