Zilliqa said exchanges paused ZIL deposits and withdrawals after an exchange partner’s cold wallet was compromised, with the amount stolen still undisclosed.
Zilliqa, a layer-1 blockchain network, said it is investigating a security incident involving an exchange partner after ZIL was stolen from a cold wallet.
In an X post on Monday, Zilliqa said it had asked exchanges to temporarily pause ZIL deposits and withdrawals as a precaution while it investigates the incident.
Zilliqa did not disclose the amount of ZIL stolen, identify the affected exchange partner or explain the possible cause of the incident. “We understand the community will have questions. We will share further updates as soon as we have verified information,” it said.
Zilliqa was launched in 2017 as a blockchain designed around sharding, a technology that splits transaction processing across multiple groups of nodes to improve scalability. The project was co-founded by researchers Amrit Kumar and Xinshu Dong, with the network’s mainnet going live in January 2019.
Zilliqa’s native token, ZIL, is used for transaction fees and smart contracts on the network. According to CoinGecko, ZIL was trading at around $0.0025 at the time of writing, down 7.1% over the past 24 hours.
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