According to the Zklend command, the incident deeply undermined users’ trust in the project. The protocol was not able to recover after the attack, and the situation was aggravated by the removal of trading pairs with Zend token on large exchanges, including Bybit and Kucoin, which even more strongly limited the liquidity and accessibility of tokens. These two factors influenced the decision of the team on the termination of Zklend.
“It was not easy to make such a decision. However, these events have seriously limited our possibilities to allocate funds for any new initiatives, ”the Zklend team wrote on the social network Kh.
The platform intends to focus on compensation for client losses. Now $ 200,000 is stored in the project’s treasury, they will be sent to users through the recovery fund. The victims of the hacker attack will be able to send claims through the portals Defi Spring and Kstrk. The creators of Zklend considered this step more appropriate than to spend the remaining resources on the restart of the platform.
In the coming weeks, Zklend will open the source code of its updated code base for all interested parties that will want to use it for further developments. The protocol team said that Zeroshadow will continue to track the lost funds. Any restored assets will be sent to the Fund for compensation for user losses.
In April, the hacker, hacking Zklend, tried to withdraw the stolen broadcasts through the Tornado Cash cryptomyxer. However, the irony of fate, the attacker himself became the victim of Fishwo, transferring the cryptocurrency to a fake service.
Source: Bits
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