Private Key Administration Issue Blamed for MerlinDEX Hack on zkSync by CertiK

CertiK over The zkSync-based decentralized exchange, MerlinDEX, reported a loss of $1.82 million to a private key administration issue rather than exploit bad actors. CertiK did an audit on MerlinDEX smart contracts before the crash.

MerlinDEX, zkSync based platform is latest decentralized finance protocol to lose money in Liquidity pool. Decentralized exchange (DEX) lost over $1.82 million during early hours of April 26th.

To date, there have been conflicting reports as to exactly what cause of the asset Loss, with Blockchain security firm, CertiK, which recently audited a projectclaiming that his initial investigation revealed that attack It was because of a private key administration issue rather than exploit.

However, eZKalibur, another zkSync-based decentralized exchange projectclaims to have researched MerlinDEX smart contracts and identified the vulnerability that enabled the theft.

While the DeFi ecosystem has seen an increase in TVL (total locked value) through first quarter of the yearHacks and rug pulls continue to plague the industry with There is no permanent solution.

According to CertiK, bad Drain actors more Over $320 million in cryptocurrency space during the first quarter of this year Single. with the current situation, that amount can exceed over $3 billion stolen last year at the end of 2023.

Kayne Davenport
Kayne Davenport has been a journalist for over 15 years, making him an expert in his field. His educational background includes a Bachelor of Journalism from UT Austin and a Master of Science in Investigative Journalism from Northwestern. Kayne's career spans multiple media outlets. He has been writing for WS News Publishers for the past year, covering finance, politics, and education stories.

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