TL;DR

Polyhedra will launch token buybacks after ZKJ plunged over 80% due to mass sell-offs and coordinated liquidity withdrawals on PancakeSwap.
A wallet linked to Wintermute transferred 3.3M ZKJ to CEXs during the crash, while another withdrew $4.3M in liquidity and dumped tokens.
Binance denied involvement in the sell-off and will adjust its Alpha Points system to exclude Alpha token trades from June 17 onward.

Polyhedra is facing a severe crisis after its ZKJ token lost more than 80% of its value in just 24 hours. The crash was triggered by a series of abnormal transactions, including large-scale sell-offs and coordinated liquidity withdrawals from PancakeSwap, which created intense selling pressure. In response, the company announced it will conduct token buybacks to stabilize the price and reduce the impact of future attacks.

The situation worsened due to movements from several wallets, including one linked to Wintermute, which transferred over 3.3 million ZKJ to centralized exchanges during the collapse. Another address withdrew $4.3 million in liquidity and sold a significant amount of tokens. Polyhedra tried to limit the damage by injecting $30 million in liquidity during the crash, but most of those funds were converted into ZKJ as the price kept falling.

Binance Denies Any Involvement in the Events

Binance was also caught up in the chaos. The company denied any involvement in the mass sell-off and stated that no members of the teams connected to KOGE participated in the trades that triggered the crisis. As a preventive move, Binance will modify the rules of its Alpha Points rewards program. Starting June 17, trades between Alpha tokens will no longer count toward the program’s points calculation, aiming to reduce risks from speculative activity around these assets.

The ZKJ collapse came just four days before the scheduled unlock of over 15 million tokens, a detail that raised further market concerns. The company announced it will continue investigating the incident. Meanwhile, it will move forward with its buyback plan to ease selling pressure and protect its token holders.

Polyhedra Works on New Security Measures

Polyhedra develops zkBridge, an interoperability technology based on zero-knowledge proofs that enables faster asset transfers between blockchains compared to current solutions. The company stated that its infrastructure remains fully operational and it will implement new measures to reinforce its ecosystem’s security against future coordinated financial attacks

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Filed under: News - @ June 17, 2025 2:34 pm