Zilliqa price fell about 6% as the team asked all exchanges to freeze transfers following a theft from an unnamed partner’s cold wallet.
The team behind Zilliqa, a Layer-1 blockchain, asked all crypto exchanges to temporarily stop deposits and withdrawals of ZIL, its native token, after coins were stolen from a cold wallet belonging to one of its exchange partners, according to a Monday post on X.
Amid the post, ZIL price dropped by around 6% to $0.00258, per data from CoinGecko. The team wrote:
“We have been made aware of a security incident involving one of our exchange partners, in which ZIL was stolen from a cold wallet.”
Zilliqa said “all exchanges have been notified and asked to temporarily pause ZIL deposits and withdrawals” while it works to establish the “root cause and full scope.”
The incident comes less than a week after ZachXBT, a pseudonymous on-chain sleuth, called all cold crypto wallets “complete garbage.”
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Most Details Are Still Missing
The team didn’t name the affected exchange, say how much ZIL was stolen or publish the wallet address involved. It also didn’t explain when the theft happened, how the wallet was accessed or whether any customers lost money.
Crypto exchange KuCoin suspended ZIL deposits and withdrawals on Sunday, July 19, a day before Zilliqa’s disclosure, citing “essential maintenance.” However, neither KuCoin nor Zilliqa has linked that pause to the theft.
Nine hours after Zilliqa first commented on the issue, the team published an update, saying they have found “no evidence that the incident was caused by the exchange’s wallet management or operational processes.” The team added:
“The investigation has instead identified a technical issue affecting transaction signing in a specific set of legacy ZIL1 wallets. We are continuing to verify the precise root cause before publishing a detailed technical report.”
The Zilliqa team reassured it will share a full post-mortem, including technical findings and any recommended actions, “as soon as the investigation is complete,” though no timeframe was specified.
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