Zilliqa has asked cryptocurrency exchanges to suspend ZIL deposits and withdrawals after a suspected theft from a cold wallet. The company said an exchange partner’s cold wallet was compromised. The amount stolen is still undisclosed.
The suspected theft
Zilliqa, the blockchain platform behind the ZIL token, detected unusual activity involving a cold wallet belonging to an exchange partner. Cold wallets are typically offline storage, considered more secure than hot wallets. The compromise suggests an attacker gained access despite those safeguards.
The company did not name the exchange partner or provide details on how the wallet was breached. Investigators are working to determine the scope of the loss. Zilliqa said it has not been able to confirm the exact amount of ZIL taken.
Exchanges respond
Following Zilliqa’s request, multiple exchanges paused ZIL transactions. Deposits and withdrawals were halted to prevent further movement of potentially stolen funds. The company urged users not to send ZIL to exchanges until the situation is resolved.
The pause affects trading pairs and wallet services. Some exchanges have issued their own statements confirming the suspension. They said they are cooperating with Zilliqa’s investigation.
What remains unknown
The key question is how much ZIL was stolen. Without a figure, it’s hard to gauge the impact on the market or the exchange’s ability to cover losses. Zilliqa has not set a timeline for when transfers might resume.
The company said it will provide updates as more information becomes available. For now, users are stuck waiting. The investigation continues.
