Zksync’s ZK token dropped over 15% after exploiting an airdrop agreement, stolen $5 million

Zksync’s ZK tokens plummeted more than 15% today, falling from $0.047 to less than $0.04 within an hour after an attacker misused the compromised admin account to steal unclaimed tokens worth around $5 million from the project’s airdrop agreement.

The ZKSYNC security team said that the management key linked to the Airdrop agreement was breached, but the incident was quarantined and did not affect the main protocol or the ZK token agreement. All user funds remain safe.

Security violations, while limited to airdrop sanctuaries, have led to rapid sales that contributed to a sharp drop in token prices. Zksync has launched an internal investigation and announced plans to provide a full update later today.

The ZKSYNC security team has identified a compromised admin account that manages the remaining unclaimed tokens from the ZKSYNC airdrop, worth $5 million. The necessary security measures are in place.

Recently, some altcoins have experienced a sudden drop in prices. Yesterday, Story Protocol’s IP token suddenly fell by more than 20%.

OM, the native token of the Mantra Ecosystem, fell 90% in value last weekend, plunging from over $6 to $0.37. The dramatic cuts have wiped out the market value of billions of dollars, with speculation as to what could be pointing to potential sales by the project team.

The project and its investors have denied these allegations, resulting from a sharp decline in forced liquidation on an unnamed exchange.