Starknet ecosystem project zkLend has announced its shutdown, with only $200,000 remaining in the treasury fund, and will continue the recovery of previously stolen assets.

BlockBeats News, June 25th, the Starknet ecosystem project zkLend posted on social media announcing that the project will be gradually shut down.

The official statement emphasized that this decision was by no means taken lightly. Over the past few months, zkLend has experienced a severe security breach that significantly eroded user confidence. Furthermore, the recent delisting of the ZEND token from major exchanges such as Bybit and KuCoin has further restricted the token's liquidity and accessibility. These changes have made it challenging for zkLend to effectively allocate resources for new initiatives.

Given the current situation, zkLend has decided to use the remaining $200,000 in the treasury for a user compensation fund, rather than restarting the money market or continuing development, as this is deemed more responsible and practical. The team will remain active and will spare no effort in advancing asset recovery efforts.

BlockBeats previously reported that the Starknet on-chain lending protocol zkLend was hacked on February 12th, resulting in a loss of over $9.5 million.