A Crypto Disaster: zkLend Hacker Loses 2,930 Stolen ETH to Fake Tornado Cash–The Shocking Details Revealed

The zkLend hacker lost all 2,930 ETH in a phishing scam while attempting to launder the stolen money through what they thought was Tornado Cash. This unexpected turn highlights the risks of online fraud, even among cyber criminals. The funds were originally stolen from the Ethereum network in a February attack on zkLend, a decentralized finance protocol platform.

How zkLend’s Exploit Led to Major Losses

On February 12, zkLend, a decentralized finance protocol lending platform built on Starknet, suffered an exploit. Using an empty market exploit, the attacker manipulated a smart contract flaw to steal approximately $9.6 million in stolen ETH. They deposited small amounts and used flash loans to inflate the lending accumulator, allowing repeated withdrawals of large sums.

The stolen funds were later bridged to the Ethereum network, but laundering them proved difficult. Initially, the hacker attempted to use Railgun, a privacy-focused protocol, but security measures returned the funds to the original address. 

Hacker Falls Victim to Fake Tornado Cash

On April 1, Consensys-backed De.Fi Antivirus Web3 revealed in a post on X that the zkLend hacker lost the stolen ETH while trying to move funds through Tornado Cash. However, they mistakenly used a fraudulent Tornado Cash front-end, resulting in an immediate and total loss. 

BREAKING: ZKLEND HACKER GOT REKT

2,930 $ETH maliciously grabbed in the zkLend hack were mistakenly deposited to a copycat website of Tornado Cash

In the end, the hacker addresses the case to the zkLend deployer as they no longer have stolen assets pic.twitter.com/J9io6vvKYl

— De.Fi Antivirus Web3 (@De_FiSecurity) March 31, 2025

Later that day, the hacker admitted their mistake on X, expressing devastation and apologizing for the attack. They urged zkLend to focus on the phishing operators instead, but zkLend responded by demanding the return of any remaining funds. Blockchain data shows the attacker sent 100 ETH at a time to what they believed was Tornado Cash, finishing with three transactions of 10 ETH before realizing the scam.

Rising Crypto Hacks: A Growing Threat

The phishing scam incident is part of a growing trend of crypto hacks. According to Immunefi’s Q1 2025 report, $1.64 billion was lost to hacks in the first three months of 2025, with the zkLend hacker loss incident ranking as the fifth-largest attack of the quarter.

In total, decentralized finance protocols lost $106.8 million across 38 incidents, while centralized finance platforms saw just two hacks but suffered $1.5 billion in losses. The Ethereum network and Binance Smart Chain remained the most targeted.

One of the biggest attacks this year was the February 21 exploit on Bybit, during which North Korea’s Lazarus Group stole $1.4 billion. This is the largest crypto hack ever, surpassing the Ronin bridge attack of March 2022, which stole $650 million.

Lessons Learned from the zkLend Disaster

The zkLend hacker losing the case highlights key lessons. Phishing scams are a significant threat not only to ordinary users but also to cybercriminals. Hackers attempting to launder funds often become targets of more sophisticated fraudsters.

zkLend and other decentralized finance protocols are now pushing for stronger security measures to prevent future attacks. The platform has strengthened blockchain analysis and bounty programs to track hackers and recover stolen ETH. Meanwhile, the broader DeFi community is implementing stricter smart contract audits and better front-end security to prevent fake websites.

Final Thoughts: Crypto Risks and Security Challenges

The zkLend hacker lost all 2,930 stolen ETH, an ironic twist that underscores the risk of the cryptocurrency world. Even those exploiting blockchain gaps are not immune to scams. This case serves as a reminder of the dangers in crypto transactions and the need for enhanced security across all levels.

The post A Crypto Disaster: zkLend Hacker Loses 2,930 Stolen ETH to Fake Tornado Cash–The Shocking Details Revealed appeared first on Coinfomania.