Zilliqa has disclosed that an undisclosed number of ZIL tokens were stolen from an exchange partner's cold wallet. The blockchain platform said it has requested all exchanges to suspend deposits and withdrawals of ZIL tokens as a precautionary measure.
Details of the incident
The company did not name the affected exchange or specify how many tokens were taken. Cold wallets are typically used to store cryptocurrency offline, making them less vulnerable to hacks. The fact that a cold wallet was compromised suggests a sophisticated attack or an internal security breach.
Response from Zilliqa
Zilliqa urged all exchanges to halt ZIL token transactions while the incident is investigated. The company said it is working with the affected exchange and relevant authorities to address the situation. No timeline was given for when normal operations would resume.
Impact on users
ZIL token holders may face temporary delays in moving their funds. The suspension affects both deposits and withdrawals, meaning users cannot trade ZIL on exchanges that comply with the request. The broader impact on Zilliqa's network and token price remains unclear.
The investigation is ongoing. Further updates are expected as more information becomes available.
