ZKsync has just announced a security breach: hackers compromised one of their admin accounts, gaining control of $5 million worth of ZK tokens. Adding fuel to the fire, reports are also surfacing that the project has apparently dumped over 66 million more tokens.

Unsurprisingly, the price of ZK reacted sharply to this news, plummeting as much as 15%. Between the security hack and now allegations of questionable financial activities, community trust in ZKsync appears to have taken a major hit.

ZKsync Hack And Token Dump Chaos

It’s been a rough year for ZKsync, the Layer-2 scaling solution for Ethereum. After hitting an all-time high last December, their ZK token has been on a downward trend throughout 2025, even sinking below its previous lows.

And now, adding to their woes, ZKsync just dropped more concerning news: they’ve been hit by a significant 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.

Coming on the heels of the largest crypto hack ever seen earlier this year, the crypto community was already on edge. The announcement of this $5 million breach instantly sent ZK’s value into a nosedive.

The price plummeted as much as 16% before managing a slight rebound from its lowest point.

A $5 million hack is definitely not good news and would be a significant problem for ZKsync in itself. But unfortunately, eagle-eyed community members have spotted some data that’s sparked some serious allegations.

The details? It seems the developers recently released an additional 100 million tokens. And since the hack, they’ve already sold off 66 million of them, which is driving the price of ZK even lower.

“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.

Essentially, it’s being alleged that ZKsync’s response to the hack was to dump their own tokens at an even faster rate. Understandably, the community is reacting with confusion and accusations of embezzlement are flying towards the project’s developers.

The extent of any potential wrongdoing remains unclear. Are the developers simply trying to minimize their losses in a bad situation, or is there something more deliberately underhanded going on?

The ZKsync team has stated they will be releasing a statement later today to address the hack. Hopefully, this will provide clarity on these burning questions, and maybe even offer some reassurance about the project’s future.