ZK Token Plummets 17% After Hacker Steals $5M From Airdrop Contract

The cryptocurrency market witnessed significant turmoil as the ZK token plummeted by 17% within just 30 minutes following a hacking incident.

The cryptocurrency market experienced a sudden setback on Thursday as ZK token underwent a 17% plunge within just 30 minutes.

This dramatic sell-off was triggered by a hacking incident that allowed the attacker to steal around $5 million in unclaimed tokens from ZKSync’s airdrop contract.

The breach was confirmed by ZKSync, which stated that it affected only unclaimed tokens and did not compromise user funds or the core protocol.

However, the exploit triggered a sharp decline in ZK token prices, which dropped by 15-20% shortly after 13:50 (GMT+2).

The token has since partially recovered, currently trading at $2.624, marking an 11% loss for the day, according to CoinMarketCap data.

Cryptocurrency prices today

Earlier in the week, ZKSync announced that an incident had occurred, affecting a contract used for distributing leftover airdrop allocations.

This breach was due to compromised admin credentials tied to the contract.

The security team at ZKSync confirmed that user funds are safe and the protocol remains secure. A detailed incident report will be shared soon.

The ZK token was launched in June 2024 and is designed to serve as a governance token for the ZKSync ecosystem.

The airdrop sparked significant interest among crypto enthusiasts, who will be closely following the developments in response to this hacking incident.