ZKsync revealed that one of its administrative accounts, controlling $5 million in ZK tokens, was breached. The project also disposed of over 66 million additional tokens, causing a 15% drop in ZK's value, severely impacting community trust.

ZKsync, known for its Ethereum Layer-2 scaling solution, faced challenges this year with its ZK token price dropping from last year's peak. Amid this decline, the project encountered a significant breach involving the compromised admin account:

The security team at ZKsync detected unauthorized access to about $5 million worth of ZK tokens, which were the remaining tokens from the ZKsync airdrop. Security measures were promptly implemented to safeguard user funds, ensuring the protocol and token contract remained secure.

With tensions already high within the crypto community due to a recent major hack, news of the $5 million breach further damaged ZK's value. Following the disclosure of the hack, ZK's price plunged by 16% before showing slight signs of recovery.

The situation worsened as suspicions arose regarding the release of an extra 100 million tokens, with 66 million of them already sold post-hack. This move led to accusations of embezzlement against ZKsync, igniting frustration within the community.

Allegedly, ZKsync responded to the hack by swiftly selling off their assets, prompting concerns about the project's integrity. The community remains uncertain about the extent of the misconduct and whether the developers were involved in any unethical practices.

ZKsync's team committed to addressing the hack in a forthcoming statement, hoping to provide clarity on the situation and establish the project's credibility going forward.