Zilliqa ($ZIL), one of the most popular altcoins during the previous bull run, announced that one of its exchange partners suffered a security breach and that $ZIL assets held in a cold wallet were stolen.
The Layer 1 blockchain reported that a security incident involving $ZIL and its exchange partner led to the theft of $ZIL from a cold wallet, and that the investigation is ongoing.
With this announcement, the $ZIL team requested that all exchanges temporarily suspend $ZIL deposit and withdrawal transactions to prevent further damage and stop the movement of stolen funds through exchanges.
The company has not yet publicly disclosed the name of the exchange affected by the security breach or the amount of $ZIL stolen. The team stated that the investigation is ongoing and that they are actively investigating the incident and coordinating with relevant parties to determine the cause and extent of the security breach.
Zilliqa stated that it will provide further updates as verified information becomes available and advised users to rely only on official Zilliqa channels for relevant information.
Previously, the South Korean exchange Bithumb had also temporarily suspended $ZIL deposits and withdrawals due to suspected security concerns.
Although the price of $ZIL dropped after the incident, it subsequently recovered.
*This is not investment advice.