Zilliqa asks exchanges to pause ZIL transfers after suspected cold wallet theft

Published: 2026-07-20 12:27:22 |

Zilliqa said it is investigating a suspected cold wallet theft involving an exchange partner and asked exchanges to pause ZIL transfers as a precaution. In an X post on Monday, the layer-1 network stated it had requested temporary pauses on both ZIL deposits and withdrawals while it verifies the incident. Zilliqa did not disclose the stolen amount, the affected exchange partner, or the suspected cause. It added that it will share further updates after verification. At the time of writing, ZIL was trading around $0.0025, down 7.1% over the past 24 hours, according to CoinGecko. The token ZIL is used for transaction fees and smart contracts on Zilliqa, a sharding-based blockchain launched in 2019 (project began in 2017). For traders, the key point is that Zilliqa’s request to pause ZIL transfers (deposits and withdrawals) may temporarily affect exchange liquidity and can amplify short-term volatility in ZIL price action while investigations unfold. ZIL transfers remain the immediate catalyst to watch.

Bearish

The news is a classic “security incident + withdrawal/deposit halt” setup that typically pressures the affected token in the short term. By requesting exchanges to pause ZIL transfers (deposits and withdrawals), Zilliqa implicitly signals an ongoing risk review and creates immediate frictions in liquidity. In past similar cases—when projects announce wallet compromises, freeze transfers, or coordinate with exchanges—traders often front-run uncertainty by reducing exposure, which can widen spreads and intensify sell-offs. Short term: expect elevated ZIL volatility, order-book imbalance, and headline-driven sentiment decline. The price already shows weakness (down ~7.1% in 24 hours), and a pause in ZIL transfers can further limit buyers’ ability to rebalance positions. Long term: impact depends on what the investigation confirms. If losses are limited, funds are recoverable, and controls improve, bearish pressure can fade and confidence may stabilize. But if the incident expands (amount disclosed, more wallets/exchanges affected), it can trigger sustained risk-off flows from the token and broader L1 sentiment.