Zilliqa Urges Exchanges to Halt ZIL Transfers Amid Cold Wallet Theft
Vexoda Newsroom
Zilliqa has requested exchanges to pause all ZIL transfers following a suspected cold wallet theft. The stolen amount remains undisclosed, and the incident is under investigation.
On July 20, 2026, Zilliqa, a layer-1 blockchain network focused on sharding technology, issued an urgent request to exchanges to temporarily halt all ZIL transfers due to a suspected cold wallet theft. The company did not disclose the amount stolen or identify the affected exchange partner.
Zilliqa launched in 2017 and is known for its innovative use of sharding to enhance scalability. The project was co-founded by Amrit Kumar and Xinshu Dong, with mainnet deployment occurring in January 2019. ZIL serves as the native token on this network, used primarily for transaction fees and smart contracts.
The incident highlights ongoing security challenges within the cryptocurrency industry. While Zilliqa assured the community that it would provide further updates once verified information was available, the temporary halt of transfers could impact liquidity in the short term, potentially affecting trading volumes and prices.
Market sentiment towards ZIL has been volatile recently; as of writing, its price had dropped 7.1% over the past day to around $0.0025 per token. This decline could be partly attributed to investor concerns about security risks, which are increasingly becoming a focus for both users and regulators.
This development is part of broader industry trends where crypto projects must continuously monitor their security protocols against sophisticated cyber threats. The incident serves as a reminder that even well-established networks like Zilliqa can face significant challenges in maintaining the integrity of their systems.
Traders should closely watch upcoming developments from both Zilliqa and affected exchanges for any updates on the status of the investigation or potential recovery efforts. Additionally, market participants may want to monitor overall liquidity levels as transfers remain paused.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.