Decentralized lending protocol ZkLend has announced a $4.9 million bounty for the return of funds stolen in a recent exploit on Starknet. The protocol, which operates on the Ethereum Layer-2 network, suffered a significant security breach that resulted in the loss of user assets. In response, ZkLend is urging the hacker to return the stolen funds in exchange for a financial reward.
The attack targeted vulnerabilities in the protocol’s smart contracts, leading to unauthorized withdrawals. ZkLend has since suspended certain operations to prevent further losses and is working closely with blockchain security firms to investigate the incident. The platform assured users that efforts are underway to strengthen security measures and restore affected funds.
Offering a bounty is a common strategy in the crypto industry to incentivize hackers to return stolen assets rather than liquidate them. ZkLend’s proposal follows similar approaches taken by other DeFi platforms that have faced exploits in the past. The move aims to minimize damage while signaling the protocol’s commitment to protecting user funds.
This latest hack underscores the persistent security risks in the decentralized finance sector. As DeFi platforms continue to evolve, security remains a top priority, with developers and auditors working to mitigate vulnerabilities in smart contract protocols.
