zkLend hack is highly related to the 2023 EraLend exploit
Yu Xian, the founder of Slow Mist, linked the zkLend hack to a previous exploit on EraLend, which took place on July 25, 2023.
| Key Takeaways: – The attacker of the zkLend hack, linked to a previous EraLend exploit, drained liquidity from zkLend’s wstETH market and transferred most stolen funds to the Ethereum network. – Lending protocol zkLend on Starknet was hacked on February 12, resulting in losses exceeding $9.5 million due to a vulnerability in its safeMath library. |
Lending protocol zkLend, operating on the Starknet blockchain, suffered a security breach on February 12, resulting in losses exceeding $9.5 million.
The zkLend hack exploited a vulnerability in the platform’s safeMath library, which caused rounding errors in token withdrawals. This flaw allowed the hacker to manipulate the burning process of zTokens for profit.
On-chain data indicates that the attacker’s address has been active for 235 days and has interacted with multiple platforms, including Binance. The majority of the stolen funds have since been transferred across chains, primarily to the Ethereum network.
CertiK Alert, a blockchain security platform, reported that the hacker executed multiple transactions targeting zkLend’s token lending markets.
The primary focus was the wstETH derivatives lending market, where the attacker managed to deplete liquidity without taking out any traditional loans. Records from zkLend’s website suggest that the attacker drained the entire pool, which previously held a total supply of $21.76 million.
In response, zkLend suspended withdrawals to prevent further damage and launched an investigation into the attack. The protocol also made an offer to the hacker, proposing that they retain 10% of the stolen funds as a “white hat” bounty while requesting the return of the remaining 90%, estimated at 3,300 ETH. Additionally, zkLend stated it would not pursue legal action if the attacker complied with this request.
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