Michaela
zkLend, a decentralized lending platform built on Ethereum’s layer-2 network Starknet, has announced it is shutting down. The decision to wind down comes months after a multimillion-dollar hack and ongoing struggles with token liquidity.
zkLend formally announced its decision to cease operations in an official statement posted on X. “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 such as Bybit and KuCoin has further constrained token liquidity and accessibility,” zkLend wrote.
The referenced exploit occurred in February 2025, when zkLend suffered a security breach resulting in the loss of approximately $9.5 million. The attacker subsequently transferred the stolen funds in multiple batches of 100 ETH to an address identified as “Tornado.Cash: Router,” a well-known mixing service used to obscure transaction trails.
The lending platform further stated that the hack impeded its growth, substantially restricting zkLend’s ability to allocate resources toward new initiatives.
zkLend has allocated the remaining $200,000 in its treasury to support users impacted by the exploit, stating that this approach represents “a more responsible and meaningful use of resources than relaunching our money markets and continuing development.”
As part of its efforts to support the community through the wind-down process, zkLend confirmed that its DeFi Spring, recovery, and kSTRK portals will remain active to allow users to unstake assets or submit claims. The team will also continue working with blockchain security firm zeroShadow to trace the stolen funds, with any successful recoveries directed to the user restitution fund.
Additionally, the lending platform plans to open-source its updated, audited codebase in the coming weeks, inviting developers and projects to build upon its existing infrastructure.
zkLend’s recent breach is part of a growing wave of crypto hacks that have plagued the industry in recent months. Security analysts have observed a sharp rise in thefts, highlighted by high-profile incidents like the $1.4 billion hack of Bybit.
As the crypto sector continues to evolve, incidents like zkLend’s serve as a reminder of the ongoing challenges in securing decentralized platforms. The community’s response and the industry’s commitment to transparency and recovery efforts will play a crucial role in shaping the future resilience of decentralized finance.
Read More
- 16 Billion Stolen Login Credentials Expose Crypto Wallets to Hacker Attacks
- Nobitex Hit by $81M Breach By Pro-Israel Hackers
- Lazarus Group Blunder Reveals Crypto Hackers’ Hidden Trail
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
