Zilliqa exchange partner cold wallet breach, ZIL drops 7%
In brief
- Zilliqa exchange partner's cold wallet compromised; ZIL tokens stolen
- Blockchain requested exchanges halt ZIL deposits and withdrawals to prevent stolen asset movement
- ZIL fell 7% intraday from $0.0028 to $0.0024 before recovering to $0.0026
- Incident under active investigation; scope and root cause being determined
Security Response Underway
Zilliqa announced the breach after becoming aware that one of its exchange partners had suffered a compromise. "We have been made aware of a security incident involving one of our exchange partners, in which ZIL was stolen from a cold wallet," the Zilliqa team said in a statement.
The incident is under active investigation, with Zilliqa working alongside relevant parties to determine what happened and how many tokens were affected. The blockchain has not yet disclosed the full scope of the theft or named the affected exchange.
Market Impact and Safeguards
The security breach sent ZIL into a sharp intraday decline. The token fell from around $0.0028 to a low of $0.0024 before rebounding to $0.0026 by press time, marking a 7% decline over the past 24 hours.
Exchanges have been alerted and requested to temporarily halt ZIL deposits and withdrawals as a safeguard against the movement or liquidation of stolen assets. This precautionary measure aims to contain the damage while investigators work to understand the breach's mechanics and scale.
