In a cunning attack, hackers impersonated a regulatory investigation by ZKsync and Matter Labs. This deceptive ploy led to the crash of ZK’s price as investors reacted to false news about a potential SEC crackdown on the Ethereum Layer 2 protocol. The fabricated announcement falsely claimed that US authorities were investigating ZKsync, sparking fear and uncertainty among crypto users, ultimately leading to a significant drop in the token’s value. The attack exploited a vulnerability in the team’s X accounts, leading to a phishing scam designed to steal user credentials. However, ZKsync quickly addressed the issue by issuing an emergency notice advising users not to engage with suspicious links and regained control of their X accounts. This incident marks ZKsync’s second major security breach this year, raising concerns about the protocol’s security practices and its ability to regain trust from investors.