Zilliqa Confirms ZIL Stolen From Partner Exchange Cold Wallet

Zilliqa has confirmed that a portion of its native ZIL tokens was stolen from a cold wallet belonging to one of its partner exchanges. The blockchain platform disclosed the incident on March 21, 2025, stating that an investigation is now underway to determine how the security breach occurred and the full extent of the losses.

Exchange Cold Wallet Compromised

According to Zilliqa’s official statement, the stolen ZIL was held in a cold wallet—a type of storage typically considered more secure because it is not connected to the internet. The breach suggests that the compromise may have occurred through physical access, insider threat, or a sophisticated attack vector that bypassed standard cold storage safeguards. Zilliqa did not name the affected exchange but said it is working closely with the partner to trace the stolen funds and identify the perpetrators.

Immediate Suspension of Deposits and Withdrawals

To prevent the stolen tokens from being moved or laundered through other platforms, Zilliqa has requested all exchanges to temporarily suspend ZIL deposits and withdrawals. The company emphasized that this is a precautionary measure and that it will provide updates as confirmed facts become available. Zilliqa urged users to rely only on official Zilliqa channels for information and to avoid unverified rumors circulating on social media.

Bithumb Suspension Raises Questions

Earlier on the same day, South Korean cryptocurrency exchange Bithumb had independently suspended ZIL deposits and withdrawals, citing suspected security concerns. While Zilliqa did not explicitly confirm Bithumb as the affected partner, the timing of the two announcements has led to widespread speculation within the crypto community. Bithumb has not issued a detailed statement beyond the initial suspension notice.

What This Means for ZIL Holders

For ZIL holders, the immediate impact is the inability to trade or transfer tokens on most major exchanges until the situation is resolved. The broader concern, however, is the reputational damage to cold storage security—a method long promoted as the gold standard for protecting digital assets. If a cold wallet can be compromised, it raises questions about the overall security infrastructure of crypto exchanges and the need for more robust multi-signature and air-gapped solutions.

Conclusion

The Zilliqa cold wallet theft is a developing story that underscores the persistent security risks in the cryptocurrency ecosystem, even for assets stored offline. As the investigation progresses, the industry will be watching closely for details on how the breach occurred and whether the stolen funds can be recovered. Zilliqa has promised further updates as verified information becomes available.

FAQs

Q1: What is a cold wallet, and why was it considered secure?
A cold wallet is a cryptocurrency storage method that is not connected to the internet, making it resistant to remote hacking. It is typically used for long-term storage of large amounts of crypto. However, it can still be vulnerable to physical theft, insider threats, or supply chain attacks.

Q2: Which exchange was involved in the Zilliqa cold wallet theft?
Zilliqa has not named the partner exchange publicly. However, South Korean exchange Bithumb suspended ZIL deposits and withdrawals around the same time, leading to speculation that it may be the affected platform. Neither Zilliqa nor Bithumb has confirmed this directly.

Q3: Will ZIL holders lose their funds?
The stolen tokens belonged to the exchange’s cold wallet, not directly to individual users. However, if the exchange does not have sufficient reserves to cover the loss, user funds could be affected. Zilliqa has not provided details on the amount stolen or whether the exchange will reimburse affected customers.