Zilliqa halts ZIL transfers following exchange cold wallet breach

The security incident triggered an immediate market reaction, with ZIL prices dropping approximately 9% to $0.00254 within 24 hours. While the Zilliqa blockchain remains operational for on-chain transactions, the restrictions primarily affect users attempting to move funds through centralized exchanges. Bitget confirmed it suspended operations on the network starting July 20, citing wallet maintenance, though it did not explicitly confirm the link to the theft.

Zilliqa has yet to disclose the total value of the stolen assets, the specific methods used by the attackers, or the identity of the affected partner. The team maintains that the breach occurred within an exchange’s infrastructure rather than through a vulnerability in the Zilliqa network itself. This event follows a history of technical hurdles for the project, including block production disruptions in 2024, though current reports suggest the theft stems from key management or signing process failures typical of high-profile cold wallet compromises.