ZKsync's ZK token drops over 15% after airdrop contract exploit, $5 million stolen

Key Takeaways

• ZKsync's ZK token fell 17% after a $5 million theft from its airdrop contract.
• The compromised admin account did not affect the main protocol or user funds, but the incident caused a token sell-off.

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ZKsync’s ZK token plunged over 15% today, falling from $0.047 to under $0.04 within an hour after an attacker exploited a compromised admin account to steal approximately $5 million worth of unclaimed tokens from the project’s airdrop contract.

The ZKsync security team said that while an admin key linked to the airdrop contract was compromised, the incident was isolated and did not affect the main protocol or ZK token contract. All user funds remain secure.

The security breach, although limited to the airdrop reserve, triggered a rapid sell-off that contributed to the sharp decline in the token’s price. ZKsync has initiated an internal investigation and announced plans to provide a full update later today.

Several altcoins have experienced a sudden price decline recently. Yesterday, Story Protocol’s IP token suddenly dropped over 20%.

OM, the native token of the MANTRA ecosystem, experienced a 90% drop in value last weekend, plummeting from over $6 to $0.37. The drastic reduction erased billions in market value with speculation around the cause pointing to potential sell-offs by the project team.

The project and its investors have denied these allegations, attributing the sharp decline to forced liquidations on an unnamed exchange.

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