Zilliqa ($ZIL), one of the popular altcoins of the 2021 bull season, announced that it is facing a significant security crisis due to a critical vulnerability discovered in its Ledger hardware wallet application.
Zilliqa, in a statement made from the X account, stated that the attack stemmed from a security vulnerability in the Ledger application.
At this point, Zilliqa states that a critical vulnerability in the Ledger application makes the private keys used for $ZIL transactions vulnerable to recovery attacks.
The team stated that the problem affects all versions released from 2019 to 2026, and that active exploitation was observed on July 19th.
Following this active vulnerability, the team stated that $ZIL transactions were suspended, but EVM transactions were not affected by this security flaw.
Following these developments, South Korea-based cryptocurrency exchanges Upbit and Bithumb classified $ZIL as a “warning asset” in their trading markets.
Exchanges have announced that they are suspending deposits and withdrawals for $ZIL, citing user security concerns.
Upbit and Bithumb made similar statements, warning that trading support for $ZIL could be completely terminated if the security issue is not resolved within a reasonable timeframe or if adequate measures to protect investors are not taken.
This development has led to a review of security measures within the Zilliqa ecosystem, and users who conduct $ZIL transactions via Ledger are advised to change their addresses and discontinue using their compromised wallets.
As you may recall, Zilliqa previously announced that $ZIL held in a cold wallet had been stolen in a security incident at one of its partner exchanges.
*This is not investment advice.