ZKsync Crashes 15% After $5 Million Hack and Token Dump Controversy

ZKsync announced that one of its admin accounts, which controlled $5 million worth of ZK tokens, was hacked. The project has also reportedly dumped more than 66 million additional tokens.

ZK’s price tanked in response to this controversy, falling 15% at the bottom. This security breach and embezzlement allegations have severely shaken the community’s trust.

ZKsync Hack And Token Dump Chaos

ZKsync, a Layer-2 scalability solution for Ethereum, has had a tough time this year. Since its ZK token reached an all-time high last December, it’s experienced a steady decline in 2025, surpassing its previous price bottom.

Today, ZKsync announced some more bad news, as the project suffered from a major hack:

“ZKsync security team has identified a compromised admin account that took control of ~$5 million worth of ZK tokens — the remaining unclaimed tokens from the ZKsync airdrop. Necessary security measures are being taken. All user funds are safe and have never been at risk. The ZKsync protocol and ZK token contract remained secure,” the firm claimed via social media.

Since the largest hack in crypto history took place earlier this year, tensions were already running high prior to this ZKsync incident. After the $5 million hack was first disclosed, ZK’s own valuation took a major tumble.

It fell 16% at one point, only recovering slightly after the bottom.

ZKsync Crashes Over 15%. Source: TradingView

A $5 million hack is bad enough news and would have been a substantial controversy for ZKsync alone. Unfortunately, some community members have noticed some data that led to serious allegations.

Specifically, the devs recently released 100 million extra tokens. Since the hack took place, they already sold 66 million, devaluing ZK even further.

“Issuing additional shares to dump the market is definitely the most disgusting, because it is a direct and unethical way of doing evil. How should we respond? The statement just now by ZKsync is completely perfunctory and cannot get rid of the suspicion of embezzlement,” AI and Crypto Investor Yuyue Chris stated.

In other words, ZKsync allegedly responded to the hack by dumping their own assets at an accelerated pace. The community has reacted with confusion and accused the project’s developers of embezzlement.

It’s unclear how far this malfeasance goes, whether the developers are trying to wash their hands of a bad situation or were complicit in other ways.

ZKsync’s team claimed that it would release a statement regarding the hack later today. Hopefully, this will clear up these unanswered questions or, at the very least, determine the project’s future legitimacy.