The blockchain ecosystem is once again shaken as Matter Labs – the developer of layer-2 ZKsync on Ethereum – has officially been sued for allegedly 'stealing technology' from its former partner BANKEX. The incident not only shakes trust in transparency within the blockchain development community but also raises significant questions about technological ethics in the open-source era.
From cooperation to dispute: The broken relationship between BANKEX and Matter Labs
The story began in 2017, when #BANKEX , a digital banking platform (now defunct), was tasked by Vitalik Buterin – co-founder of Ethereum – to support the development of Plasma. This was an important framework, expected to help solve the Ethereum network scaling issue at that time.
BANKEX asserts that during the research and development of Plasma, two of its employees, Alexandr Vlasov and Petr Korolev, used internal access to extract proprietary source code and transferred this technology to Matter Labs – which was not yet prominent on the blockchain map at that time. Notably, this behavior is alleged to have occurred while both were still receiving salaries from BANKEX.
ZKsync – Success based on someone else's technology?
Subsequently, Matter Labs launched #Zksync – one of the most successful layer-2 solutions currently on Ethereum, notable for its ability to scale the network at low costs. The project has raised over 450 million USD from major investors and has become a strong competitor in the layer-2 race, directly competing with giants like Polygon, Arbitrum, or Starknet.
However, BANKEX believes that the success of ZKsync is built on the Plasma technology they developed from the beginning, but it has not been recognized or compensated for royalties.
Not stopping with Matter Labs, the lawsuit also specifically names several influential individuals in the industry, including:
Alex Gluchowski – currently the CEO of the investment fund Dragonfly, previously supported Matter Labs.
Chris Burniske – former board member of Matter Labs.
Both are accused of playing a role in facilitating or supporting the unauthorized use of BANKEX's technology.
The court intervenes, and technological ethics are called into question.
The lawsuit is currently being handled by the Supreme Court of New York. Regardless of the outcome, it has forced the community to confront a pressing issue: in an industry built on the spirit of transparency and collaboration, are new projects quietly 'copying' the technology of others?
Notably, this is not the first time #MatterLabs has been criticized for ethical development. In August 2023, Polygon – a competitor in the layer-2 space – accused ZKsync of copying their source code without attribution. This seriously violates the spirit of open source and transparency – which are core values of blockchain.
Security issues: ZKsync continues to face turmoil
While still embroiled in litigation, ZKsync has encountered a serious security incident: a management wallet attack that resulted in approximately 5 million USD worth of ZK tokens being stolen. Although the project claims user assets were unaffected, this has further raised doubts about the management and operational capabilities of the system.
Contact with the crypto market and Binance users
The lawsuit between BANKEX and Matter Labs could be a turning point for both the Layer-2 market in particular and the entire blockchain industry in general. In a context where users increasingly demand transparency and safety, major projects like ZKsync, if they cannot prove the 'cleanliness' in technology development, may lose significant points in the eyes of investors.
For users on Binance, the fluctuations surrounding ZKsync serve as a reminder to be cautious when choosing layer-2 platforms for DeFi interactions or holding tokens. Although ZKsync was once seen as an attractive option due to zk-rollup technology, recent ethical and security issues may impact the project's long-term potential.
Meanwhile, Binance continues to expand partnerships with quality layer-2s like Optimism and Arbitrum, while always prioritizing transparency and security. This could be a safer direction for users looking for Ethereum scaling solutions.
Conclusion: Does the 'light' of Layer-2 overshadow the dark corners?
The lawsuit against Matter Labs serves as a reminder that not every success in the blockchain world comes from true innovation. Amidst the wave of hype and a multitude of projects raising hundreds of millions of USD, users need to be clear-headed about the underlying technology and ethical values of each platform.
And when trust is the greatest asset in the decentralized world, an ethical scandal could cause more damage than a technical fault.
⚠ Risk warning:
The cryptocurrency market always carries high risks. The information in this article should not be considered investment advice. Users should thoroughly research and consider before making any financial decisions. Crypto is not suitable for everyone.