Zilliqa Requests Trading Platforms Halt ZIL Transactions Following Alleged Cold Storage Breach

Zilliqa Requests Trading Platforms Halt ZIL Transactions Following Alleged Cold Storage Breach

After an exchange partner's cold storage wallet was reportedly compromised, Zilliqa is conducting an investigation into the ZIL theft while requesting that trading platforms temporarily halt deposit and withdrawal services.

A layer-1 blockchain network known as Zilliqa has announced it is looking into a security breach involving one of its exchange partners, following the theft of ZIL tokens from a cold storage wallet.

Through a post on X published Monday, Zilliqa announced that it had requested cryptocurrency exchanges to temporarily halt both deposits and withdrawals of ZIL tokens as a protective measure during the ongoing investigation into the security incident.

The blockchain network has not revealed the quantity of ZIL tokens that were taken, has not named which exchange partner was affected, nor has it provided details regarding what may have caused the security breach. "We understand the community will have questions. We will share further updates as soon as we have verified information," it said.

First introduced in 2017, Zilliqa emerged as a blockchain platform built on the foundation of sharding technology, an approach that divides transaction processing among multiple node groups to enhance scalability. Co-founders Amrit Kumar and Xinshu Dong, both researchers, launched the project, with its mainnet becoming operational in January 2019.

The network's native cryptocurrency, ZIL, serves as the payment method for transaction fees and powers smart contract execution on the platform. Based on data from CoinGecko, ZIL was valued at approximately $0.0025 at the time of writing, reflecting a 7.1% decline over the past 24 hours.