Summary
- zkLend announced the suspension of operations.
- Loss of user trust due to hacking and a decrease in token liquidity were cited as main reasons.
- They plan to use their funds for victim compensation instead of operating expenses, and will continue efforts to recover the stolen assets.
The decentralized lending protocol zkLend (ZEND) based on Starknet (STRK) has announced the suspension of its operations.
On the 25th (local time), zkLend stated on its official X (formerly Twitter), "User trust has been severely damaged due to the hack, and token liquidity has decreased as a result of major exchanges delisting our token." It added, "Given these circumstances, we believe the current funds ($200,000) should be used to compensate victims rather than for operating expenses." The company further explained, "Accordingly, we plan to cease operations."
Nevertheless, they emphasized that efforts to recover the stolen funds will continue.
Previously, zkLend suffered losses of approximately $10 million due to an exploit (vulnerability exposure).
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
