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On May 13th, the X account for the Ethereum Layer 2 network ZKSync and its development team at Matter Labs fell victim to an unauthorized breach. Hackers posted false claims suggesting that U.S. regulators were investigating the network, along with various other fraudulent messages.
A ZKsync-related X account posted On May 13, it was confirmed that the accounts for ZKSync and Matter Labs had been breached, prompting them to warn users against interacting with these accounts as they had posted links leading to a fraudulent airdrop in what appeared to be a phishing scheme.
The compromised ZKSync and Matter Labs subsequently both posted A bogus claim suggested that ZKsync was being investigated by the U.S. Securities and Exchange Commission, with potential for sanctions from the Treasury Department against the platform.
Lynette Nolan, who leads communications at Matter Labs, told Cointelegraph that the deleted X post "is not legitimate," and assured that both accounts are now completely under the team’s control again.
“A shoutout to the ZkSync hackers. Rather than releasing a token and making off with some money, they chose to terrify those deeply involved in on-chain activities,” said Harrison Leggio, co-founder of the crypto startup G8Keep, also known as "Pop Punk." posted to X.
The bogus claim appeared to be targeted at driving down the price of the platform’s namesake token, ZKsync. ZK ) has dropped approximately 2% over the past hour due to the X account security incident. according to CoinGecko.
In the past, the SEC has looked into various cryptocurrency businesses, with numerous entities opting to make public announcements whenever they were probed by the regulatory body.
The SEC has stopped many of its probes During the Trump administration, Crypto.com, Immutable, OpenSea, and Robinhood Crypto, along with several others, confirmed that the agency had concluded its investigations.
ZK has dropped by approximately 6.4% within the last day, now trading at roughly 7 cents per share. This decline follows a significant surge of almost 38.5% that ZK experienced over the previous week.
Related: U.S. prosecutors are seeking two years for an SEC accountant who hacked into accounts.
Nolan from Matter Labs mentioned that they were investigating how the X accounts were compromised, suspecting it might have been through "compromised delegated accounts." These accounts provide users with restricted access, enabling them to publish content on behalf of the X account.
Two break-ins occurred within the span of two months.
It marks the second instance of ZKSync-governed platforms compromising since April.
On April 15, someone gained access to the administrator account of ZKsync’s airdrop distribution system and utilized a feature to create 111 million unissued ZK tokens, which were valued around $5 million at that point.
The hacking incident occurred when the platform was distributing 17.5% of ZK’s total supply to those involved in the ecosystem.
The attacker later recovered 90% of the pilfered tokens , agreeing to retain 10% as a reward.
Magazine: ZK-proofs are ushering in smart contracts for Bitcoin — BitcoinOS and Starknet
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