Zilliqa Cold Wallet Breach Triggers Exchange Suspensions Amid Bithumb Speculation

Woofun AI reports that Zilliqa confirmed the theft of native ZIL tokens from a partner exchange’s cold wallet on March 21, 2025. The blockchain platform disclosed the incident, initiating an immediate investigation to determine the breach mechanism and quantify the total losses.

The compromised assets were stored in a cold wallet, a storage method typically isolated from internet connectivity to enhance security. The breach suggests the compromise occurred through physical access, an insider threat, or a sophisticated attack vector that bypassed standard cold storage safeguards. Zilliqa is collaborating with the affected partner to trace the stolen funds and identify the perpetrators, though the specific exchange remains unnamed.

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. This action is designated as a precautionary measure, with updates to be provided as confirmed facts emerge. Users are urged to rely solely on official Zilliqa channels for information, avoiding unverified rumors circulating on social media.

Earlier on the same day, South Korean cryptocurrency exchange Bithumb 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 fueled widespread speculation within the crypto community. Bithumb has not issued a detailed statement beyond its initial suspension notice, leaving the connection ambiguous.

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 involves reputational damage to cold storage security, long promoted as the gold standard for protecting digital assets via multi-signature and air-gapped solutions. This incident underscores persistent security risks in the cryptocurrency ecosystem, even for offline assets, as the industry awaits details on the breach and potential fund recovery.