ZKsync X Hacker Posts False SEC Probe in Apparent Effort to Crash Token
A shocking incident has rocked the cryptocurrency community, as the X accounts of popular Ethereum layer 2 network ZKsync and its developer Matter Labs were compromised. The attackers, it appears, aimed to crash the value of the ZK token by falsely claiming US authorities were investigating the platform.
On May 13, hackers gained access to the X accounts of both ZKsync and Matter Labs, posting a series of misleading messages that claimed the network was under investigation by the US Securities and Exchange Commission (SEC) and that sanctions could be imposed on the platform. The fake statement was accompanied by links to a fake airdrop, an apparent phishing scam designed to scare users away from interacting with the compromised accounts.
Lynnette Nolan, communications head at Matter Labs, confirmed to Cointelegraph that the now-deleted X post "is not legit" and both accounts are now "fully back in the control of the team." The incident serves as a stark reminder of the risks associated with cryptocurrency hacking and the importance of vigilance when interacting with online platforms.
Crypto startup g8keep co-founder Harrison Leggio, who goes by "Pop Punk," took to X to comment on the breach. In a tongue-in-cheek post, he praised the hackers for their creativity, saying "Shoutout to the zksync hackers. Instead of dropping a token and stealing a few bucks they decided to scare the living shit out of onchain degens."
The fake statement was seemingly aimed at crashing the price of the platform's self-titled token, ZKsync (ZK), which has fallen around 2% in the last hour amid the X account breach, according to CoinGecko. The SEC has investigated crypto companies in the past, and many firms have chosen to publicly disclose when they've been investigated by the regulator.
It's worth noting that the SEC has stopped many of its probes under the Trump administration, with Crypto.com, Immutable, OpenSea, and RobinHood Crypto, among others, confirming the agency had ended investigations. ZK is down 6.4% over the last day to trade at around 7 cents, cooling from a nearly 38.5% rally it's enjoyed over the past week.
The incident is the second compromise of ZKsync-controlled platforms since April. On April 15, an attacker breached the admin account of ZKsync's airdrop distribution contract and used a function to mint 111 million unclaimed ZK tokens, worth approximately $5 million at the time. The hack happened amid the platform handing out 17.5% of ZK's supply to ecosystem participants.
The attacker later returned 90% of the stolen tokens, agreeing to keep 10% as a bounty. It appears that the latest breach may have been an attempt by the hackers to further destabilize the market and crash the value of the ZK token. As the cryptocurrency community continues to grapple with the aftermath of this incident, it's clear that vigilance and caution are essential for protecting against such scams.