Layer-2 scaling platform ZkSync X has formally denied reports of user account hacks and rumors alleging a U.S. Securities and Exchange Commission (SEC) investigation, following a sharp decline in the value of its native token.
ZkSync X stated no security breaches compromising user accounts had occurred, directly refuting circulating allegations. The platform also dismissed speculation regarding an SEC probe, reiterating its commitment to adhering to regulatory requirements and safeguarding users’ digital assets.
In response to the incident and market reaction, ZkSync X emphasized it is actively enhancing its security posture. This includes implementing improvements to authentication procedures and bolstering monitoring systems.
The platform’s swift denial and commitment to transparency aided in mitigating further damage to user confidence and reducing immediate market volatility associated with its token.
Market analysts observing the situation indicate that ZkSync X’s long-term ability to restore and maintain investor trust and token stability will require ongoing efforts focused on system security upgrades and continued operational transparency.