zkLend Shuts down Due to Hack and Token Delisting
zkLend, a decentralized lending platform on Starknet, is calling it quits. The protocol announced its decision on June 25, not long after a $10 million exploit in February.
zkLend lost almost $9.5 million in the February 12 hack. The platform’s struggles intensified when ZEND was delisted from major exchanges like Bybit and KuCoin.These factors led zkLend to decide to shut down.
zkLend stressed that the decision was tough. “We’ve lost user trust after the exploit,” they said. “The ZEND delisting also hurt our liquidity. We can’t move forward with new projects.”
Now, zkLend is focusing on returning funds to affected users. they plan to use the remaining $200,000 in treasury for this purpose. Users can access recovery resources through DeFi Spring, recovery, and kSTRK portals.
The crypto industry has faced numerous hacks lately. In 2024, over 160 incidents led to $2.3 billion in losses. Smaller projects often struggle to recover, with their tokens plunging. Starknet’s native token, STRK, is feeling the pressure. it’s down 28% in a month and 84% in a year.
- zkLend lost $9.5 million in a February exploit.
- ZEND was delisted from major exchanges.
- zkLend is using remaining treasury funds for user restitution.
- STRK is currently trading around $0.11.
Crypto security is a major concern. The $1.4 billion Bybit hack and Sui’s significant token drop after a $220 million Cetus exploit highlight this issue. Users should stay informed about these risks.
