ZKsync Rocked by $5M Hack and Massive Token Dump Allegations

ZKsync, a prominent Ethereum Layer-2 scaling solution, is under intense scrutiny following a security breach involving one of its admin accounts, which reportedly led to the theft of approximately $5 million worth of ZK tokens. On top of that, the project is facing allegations of dumping over 66 million newly released tokens, further rattling investor confidence.

In a statement shared on social media, the ZKsync team confirmed the hack:

“Our security team has identified a compromised admin account that took control of ~$5 million worth of ZK tokens — the remaining unclaimed tokens from the ZKsync airdrop. Necessary security measures are being taken. All user funds are safe and have never been at risk. The ZKsync protocol and token contract remain secure.”

The announcement follows a challenging year for ZKsync. Since hitting its all-time high last December, the price of ZK has been on a steady downtrend in 2025, recently plunging more than 15% following news of the hack.

Adding fuel to the fire, data surfaced suggesting the team had minted an additional 100 million ZK tokens, selling off 66 million shortly after the breach. This move raised serious concerns among the community, with many accusing the developers of acting unethically — and potentially engaging in embezzlement.

Crypto investor and AI specialist Yuyue Chris commented:

“Issuing additional shares to dump the market is definitely the most disgusting. It's a direct and unethical way of doing evil. The recent statement from ZKsync feels completely perfunctory and fails to clear suspicions of embezzlement.”

The allegations have cast a dark cloud over ZKsync, with users questioning whether the project is simply mismanaging a crisis — or if deeper misconduct is at play.

The ZKsync team has promised a more detailed statement later today. Until then, the future credibility of the project hangs in the balance, as the community awaits answers.