zkSync Suffers $5M Loss After Admin Wallet Exploit

zkSync, an Ethereum Layer 2 network with over $500 million in total value locked (TVL), experienced a security breach on Tuesday when an admin wallet was compromised.

The zkSync team confirmed that the breach led to the theft of $5 million worth of ZK tokens, which were part of the remaining unclaimed tokens from the ZKsync airdrop. “Necessary security measures are being taken,” the team said on X.

The protocol's native ZK token has dropped around 10% over the past 24 hours, according to CoinGecko.

The team emphasized that all user funds remain safe and “have never been at risk.” Similarly, the ZKsync protocol and ZK token contract remained secure, the team added, noting that an investigation into the incident is currently underway.

The breaches come amid a wave of high-profile hacks in the crypto space. In the first quarter of 2025 alone, cryptocurrency-related thefts totaled over $1.77 billion, according to Finbold’s Q1 Cryptocurrency Market Report. Albeit, a single attack on a Bybit wallet accounted for the majority of the losses.