Hackers Steal $1.82 Million from zkSync-based DEX Merlin

04/26/2023 02:41 • Metaverse Matters • 132 views

On April 26th, it was reported that Bobbie, the founder of Web3 Knowledge Graph Protocol 0xScope, tweeted that the liquidity of zkSync ecological DEX Merlin was depleted, and hackers stole $1.82 million in funds and bridged it to Ethereum.

ZkSync Ecological DEX Merlin Liquidity Exhaustion

On April 26th, Bobbie, the founder of Web3 Knowledge Graph Protocol 0xScope, took to Twitter to inform the world that the liquidity of the zkSync-based decentralized exchange (DEX) Merlin had been drained, and hackers had stolen $1.82 million worth of funds. The hackers then transferred the stolen funds to Ethereum. This incident has once again highlighted the need for better security measures in the world of cryptocurrency.

What is zkSync?

zkSync is a Layer 2 scaling solution built on top of Ethereum that helps to reduce the cost and increase the speed of transactions. The protocol uses zero-knowledge proofs to verify transactions and maintain the security of the network. Because it is built on Ethereum, it benefits from the security and decentralization of the Ethereum network.

What is a DEX?

A decentralized exchange, or DEX, is a cryptocurrency exchange that operates on a decentralized blockchain network. Unlike centralized exchanges, which are run by a company, DEXs are open to everyone and are not controlled by any single entity. This makes them more secure and resistant to hacking attempts.

The Hack

On April 26th, hackers managed to drain the liquidity of the zkSync-based DEX Merlin and steal $1.82 million worth of funds. The hackers then bridged the stolen funds to Ethereum, making it difficult to recover them. The incident has raised concerns about the security of zkSync-based DEXs and the need for improved security measures to protect users’ funds.

Improving Security Measures

While the incident at Merlin was unfortunate, it provides an opportunity for the developers of zkSync and other Layer 2 scaling solutions to improve the security of their protocols. Some possible solutions include implementing multi-factor authentication, increasing the transparency of transactions, and working with security experts to identify and patch vulnerabilities.

Conclusion

The recent hack at Merlin highlights the need for improved security measures in the world of cryptocurrency. While DEXs like Merlin offer a number of benefits over centralized exchanges, they are not immune to hacking attempts. The developers of these platforms must continue to work to improve the security of their protocols to protect users’ funds.

FAQs

1. How does zkSync work?
zkSync is a Layer 2 scaling solution built on top of Ethereum that reduces the cost and increases the speed of transactions by using zero-knowledge proofs to verify transactions.
2. What is a DEX?
A decentralized exchange, or DEX, is a cryptocurrency exchange that operates on a decentralized blockchain network.
3. How can we improve the security of cryptocurrency platforms?
Possible solutions include implementing multi-factor authentication, increasing the transparency of transactions, and working with security experts to identify and patch vulnerabilities.
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