Matter Labs, the team behind Ethereum layer 2 scaling solution zkSync, has denied that 921 Ether (ETH)  worth $1.7 million will be "stuck forever" in one of its new projects.

The statement comes as one zkSync project is currently experiencing issues in transferring the funds that it accumulated during its token sale.

In a response tweet, Matter Labs confirmed that they're working to solve the problem and will soon publish a "detailed update."

The issue appears to have been caused by its new zero-knowledge Ethereum Virtual Machine solution, "zkSync Era," not being fully Ethereum Virtual Machine (EVM)-compatible.